The Central Bank of Nigeria has scrapped the cash pool requirement previously placed on export proceeds belonging to International Oil Companies (IOCs), in a move aimed at giving the foreign exchange market more flexibility.
This was made known in a circular released yesterday by the bank’s Director of Trade and Exchange, Dr. Musa Nakorji. According to the CBN, the decision is part of efforts to further liberalise the market and align foreign exchange operations with present market realities.
With this new directive, IOCs can now access and repatriate 100 percent of their export proceeds through Authorised Dealer Banks without the earlier restrictions. The banks, however, are still expected to ensure proper documentation and submit monthly reports to the Director of Trade and Exchange.
Before now, the CBN had introduced a policy in 2024 requiring Authorised Dealer Banks to place 50 percent of repatriated export proceeds from IOCs into a cash pool arrangement, while the remaining 50 percent had to stay back for 90 days before it could be repatriated.
This latest move is likely to be seen as another step by the apex bank to ease dollar liquidity concerns and make Nigeria’s foreign exchange environment more attractive to major oil sector players.