CBN Grants IOCs Full Access to Export Proceeds

The Central Bank of Nigeria (CBN) has officially halted the cash pooling rule, granting International Oil Companies (IOCs) immediate and unrestricted access to their export proceeds. This decision is part of ongoing reforms aimed at liberalizing the foreign exchange market and enhancing liquidity and efficiency.

Previously, a guideline introduced in 2024 required authorized dealer banks to pool 50 percent of export proceeds on behalf of IOCs, with a stipulation for a 90-day repatriation period. The new circular, signed by Musa Nakorji, Director of the Trade Exchange Department at CBN, supersedes this earlier guideline, allowing IOCs to repatriate 100 percent of their export proceeds.

The CBN emphasized that authorized dealer banks must ensure adequate documentation and submit monthly reports. This decision reflects the CBN's commitment to aligning its policies with current market realities and creating a more stable Nigerian foreign exchange market.