CBN Approves 100% Forex Repatriation for Oil Companies

The Central Bank of Nigeria (CBN) has issued a circular approving the repatriation of 100% of foreign exchange earnings for international oil companies (IOCs). This decision, signed by Dr.

Musa Nakorji, Director of the Trade Exchange Department, represents a significant shift from earlier policies that required IOCs to repatriate only 50% of their export proceeds. The new policy is part of ongoing reforms aimed at improving liquidity and stabilizing the Nigerian foreign exchange market.

The CBN's circular, published on its website, states that IOCs must submit adequate documentation and monthly reports to the Trade Exchange Department. The previous guideline regarding cash pooling arrangements has been overridden by this new directive, which allows IOCs to retain the full amount of their export proceeds.

The CBN's adjustments are intended to further liberalize the market in response to prevailing conditions, easing constraints faced by oil firms in accessing their foreign exchange earnings.