CBN Grants Oil Firms 100% Access to Forex Earnings

The Central Bank of Nigeria (CBN) has issued a circular allowing international oil companies (IOCs) to have 100% access to their export foreign exchange earnings. This decision, communicated by Dr.

Musa Nakorji from the CBN's trade exchange department, represents a significant shift towards the liberalization of the foreign exchange market. The new policy replaces a previous framework set for 2024, which required IOCs to repatriate only 50% of their export proceeds immediately, with the remaining 50% held for 90 days.

The latest circular indicates that IOCs can now directly access their forex inflows through authorized dealer banks, overriding earlier restrictions. This move is part of broader reforms aimed at strengthening liquidity and stabilizing the Nigerian foreign exchange market.

The CBN anticipates that this policy change will improve operational constraints for IOCs and enhance confidence in the forex market, supporting efforts to attract foreign inflows.