CBN IOCs forex repatriation approved, granting oil companies full access to export earnings and boosting liquidity in Nigeria’s FX market

The Central Bank of Nigeria (CBN) has approved the full repatriation of export proceeds by International Oil Companies (IOCs), enabling them to access 100 per cent of their foreign exchange earnings through authorised dealer banks.

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The directive, issued by the CBN’s Trade and Exchange Department and signed by Director Dr Musa Nakorji, marks a major shift towards liberalisation of Nigeria’s foreign exchange market.

The new policy replaces the 2024 framework, under which authorised dealer banks could pool 50 per cent of oil firms’ repatriated proceeds while holding the remaining 50 per cent for 90 days before it could be remitted abroad.

In the circular, the apex bank stated, “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 per cent of their export proceeds through the ADBs, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department.”

The directive overrides all previous cash pooling guidelines for oil companies, requiring immediate compliance from authorised dealer banks.

CBN officials said the move is part of broader reforms aimed at strengthening liquidity, stabilising the Nigerian foreign exchange market, and attracting foreign inflows.

Restoring full access to export earnings is expected to ease operational constraints for IOCs and bolster confidence in the FX market.

The policy also dismantles restrictions introduced in 2024, which had required IOCs to stagger access to export proceeds and obtain regulatory approvals for certain cash pooling transactions.

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Analysts suggest that the latest directive could accelerate investment in Nigeria’s oil and gas sector, while providing international oil companies with greater operational flexibility and predictability in repatriating earnings.