The Central Bank of Nigeria (CBN) has scrapped the cash pooling requirement previously imposed on export proceeds of International Oil Companies (IOCs), marking a significant shift in foreign exchange policy.
The directive was communicated through a circular issued by the Director of Trade and Exchange, Musa Nakorji. According to the apex bank, the move is aimed at liberalising the foreign exchange market and aligning policy with prevailing economic realities.
Under the new framework, IOCs are now permitted full access to their export earnings without restrictions. The CBN stated that companies can repatriate 100 percent of their proceeds through authorised dealer banks, provided all necessary documentation is completed. These banks are also required to submit monthly reports to the Director of Trade and Exchange to ensure regulatory compliance.
This marks a departure from the earlier policy introduced in 2024, which mandated authorised dealer banks to pool 50 percent of export proceeds on behalf of IOCs. The remaining 50 percent was held for a period of 90 days before companies could access or repatriate the funds.
The removal of this restriction is expected to improve liquidity and enhance investor confidence in Nigeria’s foreign exchange market. By granting IOCs greater control over their funds, the policy could also encourage increased participation and inflows into the oil and gas sector.
Analysts view the decision as part of broader efforts by the CBN to stabilise the naira and attract foreign investment, particularly in a period marked by ongoing economic reforms and global market uncertainties.
