CBN Gives Oil Firms Free Reign To Repatriate Export Earnings

According to Ireporter Online, the Central Bank of Nigeria (CBN) has directed all Authorised Dealer Banks (ADBs) to grant international oil companies full access to repatriate their export earnings. The move is aimed at enhancing activity in the country’s foreign exchange market.

In a circular issued on Wednesday and referenced TED/FEM/FPC/PUB/001/003, the apex bank confirmed that international oil companies can now repatriate 100 percent of their export proceeds without restriction. The circular, signed by Musa Nakorji, Director of the Trade and Exchange Department, instructs banks to ensure proper documentation and submit monthly reports to the CBN.

“The IOCs may repatriate 100% of their export proceeds through the ADBs, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department,” the circular stated.

The CBN emphasized that this directive supersedes previous instructions on cash pooling, urging banks to comply fully. The new policy represents a shift from measures introduced in 2024, when banks were only allowed to repatriate half of international oil companies’ export earnings immediately, while the remaining 50 percent had to be held for 90 days. That earlier arrangement was intended to manage foreign exchange flows and support liquidity in the market.

With the revised directive, the central bank is providing greater flexibility to international oil companies in handling their foreign earnings. The CBN has instructed all Authorised Dealer Banks to implement the policy immediately, signaling its commitment to aligning foreign exchange operations with current market conditions and facilitating smoother inflows and outflows of foreign currency.