The Central Bank of Nigeria (CBN) has granted approval to the International Oil Companies (IOCs) operating in Nigeria to repatriate their export proceeds and unrestricted access to 100 per cent of their foreign exchange earnings.
According to the circular by the CBN released on Wednesday, this directive marks a significant shift in Nigeria’s foreign exchange policy framework and signals a broader move towards market liberalisation.
The circular stated that the decision is part of the ongoing reforms aimed at improving liquidity, stabilising the foreign exchange market, and attracting foreign inflows into the economy.
Under the new policy, IOCs can now repatriate their export earnings through authorised dealer banks, which have been mandated to ensure proper documentation and submit monthly reports to the CBN.
The latest directive has scrapped the phased repatriation structure, granting oil companies unfettered access to their forex inflows and overriding all previous guidelines on cash pooling arrangements.
The CBN explained that the policy adjustment reflects current market realities and it is designed to deepen the foreign exchange market while boosting investor confidence.
This development, according to some analysts, comes as part of a broader reform agenda by the CBN to improve transparency and efficiency in the foreign exchange market, following years of liquidity challenges and regulatory bottlenecks.
GIK/APA
