The Central Bank of Nigeria has granted international oil companies operating in the country unrestricted access to their foreign exchange earnings, approving the full repatriation of export proceeds through authorised dealer banks.

The policy shift, contained in a circular issued by the bank’s Trade and Exchange Department and signed by its director, Dr Musa Nakorji, is part of broader efforts to deepen liquidity and stabilise the foreign exchange market.

Under the new framework, oil majors can now repatriate 100 per cent of their export proceeds without the previous time-based restrictions. Authorised dealer banks are mandated to process these transactions, ensure full documentation and file monthly reports to the Trade and Exchange Department.

The decision reverses an earlier regime introduced in 2024, which required oil companies to remit only half of their export proceeds immediately, while the remaining 50 per cent could be repatriated after a 90-day holding period. That arrangement was designed to boost onshore dollar supply and moderate pressure on the naira.

The CBN explained that while the earlier measures were aimed at creating more liquidity and stability in the foreign exchange market, evolving conditions now warrant further liberalisation. By allowing oil companies unfettered access to their earnings, the bank is signalling a shift towards a more market-driven foreign exchange framework.

The circular also explicitly overrides all previous guidelines on cash pooling arrangements for oil companies. Earlier rules had required prior CBN approval for cash pooling structures and detailed disclosure of expenditures before funds could be consolidated and repatriated.

Industry analysts say the new directive is likely to be welcomed by international oil companies, which had complained that delayed access to their forex receipts complicated cash-flow planning and investment decisions. The move could improve investor sentiment in the oil and gas sector, even as it raises questions about how the CBN will balance capital flow liberalisation with the need to maintain adequate foreign reserves.

Authorised dealer banks have been instructed to comply with the new rules immediately, signalling that the central bank wants a swift transition away from the restrictive repatriation regime and towards a more liberal foreign exchange environment for the country’s largest forex earners.