The Central Bank of Nigeria has approved full repatriation of export proceeds for international oil companies, allowing them to access 100 percent of their foreign exchange earnings through authorized dealer banks.
The directive, issued by the bank’s Trade and Exchange Department, forms part of broader efforts to improve liquidity and stability in Nigeria’s foreign exchange market.
Under the new framework, oil companies are now permitted to remit all export proceeds without restrictions, marking a significant departure from earlier guidelines introduced in 2024.
Previously, authorised dealer banks were allowed to pool 50 per cent of repatriated export earnings on behalf of oil firms, while the remaining 50 per cent was held for up to 90 days before it could be accessed or transferred.
According to the apex bank, the revised policy is designed to further liberalise the foreign exchange market and align regulations with prevailing economic conditions.
The directive also places compliance obligations on authorised dealer banks, requiring them to ensure proper documentation of transactions and submit monthly reports to the regulator.
In addition, the bank clarified that the new policy supersedes all earlier circulars relating to cash pooling arrangements for oil companies, effectively removing prior restrictions on access to export proceeds.
The move is expected to ease operational constraints faced by international oil companies, particularly in managing cash flows and meeting offshore obligations.
Analysts say the decision could enhance investor confidence in Nigeria’s oil and gas sector by improving the ease of doing business and reducing uncertainties around foreign exchange access.
The policy shift comes amid ongoing reforms in the country’s foreign exchange regime, as authorities seek to attract investment inflows and strengthen market efficiency.
Market participants will be watching closely to assess the impact of the directive on foreign exchange liquidity and capital flows within the broader economy.