The Central Bank of Nigeria has officially removed the cash pool requirement previously imposed on export proceeds of International Oil Companies, marking a significant policy shift aimed at strengthening Nigeria’s foreign exce market.
This development was announced in a circular issued by the Director of Trade and Exce, Dr Musa Nakorji. According to the apex bank, the move is part of ongoing efforts to liberalise the foreign exce framework and align it with current market realities.
Under the new directive, International Oil Companies are now allowed full and unrestricted access to their repatriated export proceeds. The policy grants them the ability to repatriate 100 percent of their earnings through Authorised Dealer Banks without prior restrictions.
The circular also mandates these banks to ensure proper documentation of all transactions and submit monthly reports to the Director of Trade and Exce. This ensures transparency and regulatory oversight while allowing greater flexibility for oil firms operating in Nigeria.
Previously, in 2024, the Central Bank had introduced a rule requiring Authorised Dealer Banks to retain 50 percent of export proceeds in a cash pool arrangement. The remaining 50 percent was held for 90 days before companies could access or repatriate the funds. That policy was aimed at ilising liquidity in the foreign exce market at the time.
However, the latest decision signals a shift towards a more open and investor friendly environment. Analysts believe the move could improve investor confidence, increase foreign exce inflows, and enhance the ease of doing business in Nigeria’s oil and gas sector.
The policy ce is expected to positively impact liquidity and attract more participation in the foreign exce market.
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