CBN Scraps Restrictions, Allows Oil Companies Retain 100% Export Proceeds

The Central Bank of Nigeria (CBN) has eased foreign exchange regulations, allowing international oil companies to retain and repatriate 100 percent of their export proceeds, in a move aimed at boosting liquidity and investor confidence.

The directive, issued through the apex bank’s Trade and Exchange Department, grants oil firms unrestricted access to their foreign exchange earnings through authorised dealer banks, effective immediately.

The policy marks a significant shift from earlier rules introduced in 2024, which required banks to hold back 50 per cent of export proceeds for up to 90 days before companies could access the funds.

Under the new framework, the CBN has scrapped the “cash pooling” arrangement entirely, allowing oil firms to repatriate all earnings without delay, provided proper documentation is submitted, and banks comply with reporting requirements.

The central bank said the move is part of broader reforms to deepen Nigeria’s foreign exchange market, improve dollar liquidity, and stabilise the naira. Analysts say the policy could also ease operational constraints for oil companies and attract more foreign investment into the country’s energy sector.

While the reform is expected to boost confidence in Nigeria’s FX market, experts note that its impact on immediate dollar supply may be gradual, depending on oil production levels and broader economic conditions.

The directive takes immediate effect and overrides all previous guidelines governing the repatriation of export proceeds by oil firms.