Ayomide Bello
International oil companies (IOCs) operating in Nigeria have received a major policy boost as the Central Bank of Nigeria (CBN) approved full repatriation of their export proceeds, allowing them unrestricted access to 100 per cent of their foreign exchange earnings.
The directive, issued through a circular by the apex bank’s Trade and Exchange Department and released on Wednesday, marks a significant shift in Nigeria’s foreign exchange policy framework and signals a broader move towards market liberalisation.
Signed by the department’s director, Dr. Musa Nakorji, the circular stated that the decision is part of ongoing reforms aimed at improving liquidity, stabilising the FX market, and attracting foreign inflows into the economy.
Under the new policy, IOCs can now repatriate the entirety of their export earnings through authorised dealer banks, which have been mandated to ensure proper documentation and submit monthly reports to the CBN.
The move effectively dismantles the earlier framework introduced in 2024, which imposed restrictions on access to export proceeds. Under that regime, oil companies were allowed immediate access to only 50 per cent of their earnings, while the balance was held for 90 days before repatriation. In addition, authorised dealer banks were permitted to pool part of the proceeds on behalf of the firms.
With the latest directive, the CBN has scrapped the phased repatriation structure, granting oil companies unfettered access to their forex inflows and overriding all previous guidelines on cash pooling arrangements.
The apex bank said the policy adjustment reflects current market realities and is designed to deepen the FX market while boosting investor confidence.Analysts say the decision is likely to ease operational constraints for IOCs, many of which had raised concerns over delayed access to their earnings under the previous regime. It is also expected to enhance Nigeria’s attractiveness as an investment destination, particularly in the oil and gas sector, by aligning forex policies more closely with global best practices.
The development comes as part of a broader reform agenda by the CBN to improve transparency and efficiency in the foreign exchange market, following years of liquidity challenges and regulatory bottlenecks.