The Central Bank of Nigeria (CBN) has approved a major policy shift, granting international oil companies (IOCs) unrestricted access to their export proceeds in a move aimed at strengthening the country’s foreign exchange market.
The new directive, which allows oil firms to repatriate 100 per cent of their foreign exchange earnings, was announced in a circular issued on Wednesday by the apex bank’s Trade and Exchange Department.
According to the circular signed by the department’s Director, Dr. Musa Nakorji, the decision forms part of broader reforms designed to boost liquidity and enhance stability in Nigeria’s forex market.
With the new policy, authorised dealer banks are now permitted to process the full repatriation of export proceeds for oil companies, provided proper documentation is maintained and monthly reports are submitted to the CBN.
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The move marks a significant departure from the previous framework introduced in 2024, which required oil firms to repatriate only 50 per cent of their export earnings immediately, while the remaining balance was held for 90 days before access was granted.
Explaining the rationale behind the shift, the apex bank said the policy aligns with current market realities and is intended to further liberalise the foreign exchange system.
“IOCs are hereby granted unfettered access to their repatriated export proceeds,” the circular stated, adding that the new guideline overrides all earlier directives on cash pooling arrangements.
The CBN grants oil companies full access to export proceeds at a time when stakeholders have continued to call for policies that improve dollar liquidity and ease constraints in the forex market.
Under the previous arrangement, oil firms were also required to seek prior approval before repatriating funds under cash pooling structures and provide detailed expenditure reports.
However, analysts say the latest decision by the apex bank is expected to ease operational bottlenecks for oil companies while improving confidence among foreign investors.
With the CBN grants oil companies full access to export proceeds policy now in effect, authorised dealer banks have been directed to comply immediately, signaling a new phase in Nigeria’s forex market reforms.