LAGOS — The Central Bank of Nigeria (CBN) has officially ended the “cash pooling” restrictions on International Oil Companies (IOCs), allowing them to retain and repatriate 100% of their export proceeds with immediate effect.
The directive, contained in a circular signed by Musa Nakorji, Director of the Trade and Exchange Department, marks a full reversal of the 2024 policy that required oil firms to hold 50% of their repatriated funds in local banks for at least 90 days before transferring them to parent company accounts.
By removing these capital controls, the apex bank aims to deepen liquidity in the official foreign exchange market and align regulatory frameworks with “current market realities.” The move comes as Nigeria’s foreign reserves show signs of recovery, providing the CBN with the necessary buffer to liberalize capital flows.
Under the new guidelines, Authorized Dealer Banks (ADBs) are now permitted to process the 100% repatriation of oil exports without the previous 90-day waiting period. This shift is expected to improve the ease of doing business for major energy players and signal a more transparent, market-driven environment for foreign investors.
However, the CBN maintained that strict oversight will remain in place. All participating banks must continue to conduct rigorous “Know Your Customer” (KYC) checks and submit detailed monthly reports to the Trade and Exchange Department to ensure all transactions comply with anti-money laundering and transparency standards.
Industry analysts suggest that while the move may not immediately increase the total volume of dollar inflows, the increased velocity of funds through the official banking system could help stabilize the Naira and reduce the volatility seen in the FX windows over the past year.
