CBN Grants Oil Firms Full Access to Export Forex Earnings

The Central Bank of Nigeria has approved unrestricted access to export proceeds for international oil companies (IOCs), allowing them to repatriate 100 per cent of their foreign exchange earnings through authorised dealer banks.

The decision was communicated in a circular issued by the apex bank’s Trade and Exchange Department, signalling a further step toward liberalising Nigeria’s foreign exchange market.

The circular, signed by Musa Nakorji, noted that the move forms part of broader reforms aimed at boosting liquidity and stabilising the country’s FX market.

Read Also:

• Flutterwave CEO, Elumelu, Ovia Lead Nigeria’s Power Push for UK Capital Dominance
• Tinubu Expands CNG Initiative to Include Electric Vehicles

Shift from Previous Framework

According to the directive, the new policy replaces the earlier framework introduced in 2024, which required a phased repatriation structure for export proceeds.

The apex bank explained:

“As part of the reforms aimed at creating more liquidity and stability in the Nigerian Foreign Exchange Market, the Bank issued two circulars in 2024, allowing Authorised Dealer Banks (ADBs) to cash pool 50% of repatriated export proceeds on behalf of International Oil Companies (IOCs) with the remaining 50% retained for 90 days before repatriation.”

The latest directive eliminates that restriction, granting oil firms complete and immediate access to their forex inflows.

It further stated:

“However, to further liberalise and deepen the market in line with current market realities, IOCs are hereby granted unfettered access to their repatriated export proceeds. The IOCs may repatriate 100% of their export proceeds through the ADBs, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department.”

The CBN clarified that the new guideline supersedes all previous rules governing cash pooling arrangements for oil companies and directed authorised dealer banks to comply with immediate effect.

Background and Implications

The move effectively reverses earlier restrictions that required international oil firms to stagger access to their export earnings and seek approvals for certain transactions.

Under the previous regime, companies could only repatriate 50 per cent of their proceeds immediately, while the remaining balance was delayed for up to 90 days. Additional provisions also allowed the sale of part of these proceeds through authorised dealers.

By restoring full access, the policy is expected to ease operational bottlenecks for oil firms, strengthen investor confidence, and support ongoing efforts to improve liquidity in the foreign exchange market while attracting increased capital inflows into the economy.