… mandates banks to ensure documentation, reporting amid deeper FX market liberalisation
Oredola Adeola
The Central Bank of Nigeria (CBN) has approved the full repatriation of export proceeds by International Oil Companies (IOCs), allowing them to access 100 per cent of their foreign exchange earnings through authorised dealer banks.
The directive, which marks a significant shift towards foreign exchange market liberalisation, was contained in a circular issued by the apex bank’s Trade and Exchange Department and obtained by Advisors Reports.
Signed by the department’s Director, Dr. Musa Nakorji, the circular, according to the CBN, forms part of broader reforms aimed at strengthening liquidity and stabilising the Nigerian FX market.
The CBN said, “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 Authorised Dealer Banks (ADBs), who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department.”
The apex bank also outlined permissible utilisation channels for such proceeds, listing petroleum profit tax, royalties, domestic contractor payments, cash calls, domestic loan servicing, transaction tax, education tax, and foreign exchange sales in the Nigerian FX market.
Advisors Reports gathered that the policy reverses an earlier restriction introduced by the apex bank, which capped immediate repatriation at 50 per cent.
Under the previous arrangement, IOCs were allowed to repatriate only half of their export proceeds upfront, while the remaining 50 per cent was retained for 90 days before repatriation.
The CBN explained that the earlier policy, introduced in 2024, permitted Authorised Dealer Banks to cash-pool 50 per cent of repatriated export proceeds on behalf of IOCs, with the balance held within the system temporarily.
The latest move to allow full repatriation is seen as part of Nigeria’s renewed drive to incentivise IOCs to sustain investments in the country’s hydrocarbon sector, while also improving market confidence and attracting foreign inflows.
