By Abiodun Folarin
WorldStage– The Central Bank of Nigeria (CBN), has removed the cash pooling requirement for International Oil Companies (IOCs), stating that they may now repatriate 100 per cent of their export proceeds through Authorised Dealer Banks (ADBs).
As part of earlier reforms aimed at enhancing liquidity and stability in the Nigerian foreign exchange market, the Bank had issued two circulars in 2024 permitting ADBs to pool 50 per cent of repatriated export proceeds on behalf of IOCs, while the remaining 50 per cent was to be retained for 90 days before repatriation.
However, the apex bank, in a circular signed by the Director, Trade and Exchange Department, Dr. Musa Nakorji, disclosed that, in order to further liberalise and deepen the market in line with current realities, IOCs are now granted unfettered access to their repatriated export proceeds.
He stated: “Accordingly, IOCs may repatriate 100 per cent of their export proceeds through ADBs, which are required to ensure proper documentation and submit monthly reports to the Director, Trade and Exchange Department.
“This provision supersedes all previous circulars issued by the Bank on cash pooling.
“All Authorised Dealer Banks are advised to note and comply accordingly, as this directive takes immediate effect.”
