CBN Relaxes FX Rules, Grants Oil Firms Full Access to Export Earnings

The Central Bank of Nigeria (CBN) has revised its foreign exchange policy for international oil companies (IOCs), removing earlier restrictions on how export proceeds are handled. The new directive allows oil firms to retain and repatriate 100 per cent of their earnings, marking a significant shift from previous regulations.

Under the former framework introduced in 2024, banks were required to withhold half of the proceeds from crude oil exports on behalf of IOCs, while the remaining balance could only be accessed after a 90-day waiting period. That arrangement has now been scrapped.

In a circular issued midweek, the apex bank stated that the updated policy takes immediate effect and overrides all prior guidelines related to cash pooling. The directive, signed by the Director of Trade and Exchange, Musa Nakorji, gives oil companies unrestricted access to their export revenues through authorised dealer banks.

The CBN explained that the move is part of ongoing efforts to liberalise Nigeria’s foreign exchange market and align policy with evolving economic conditions. By eliminating bottlenecks around access to foreign earnings, the regulator aims to improve liquidity and efficiency within the FX ecosystem.

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Banks have been instructed to ensure all transactions are properly documented, with monthly reports submitted to the CBN’s trade and exchange department for monitoring.

The earlier restrictions were initially introduced to manage dollar liquidity in the domestic market, as the regulator sought to control capital flows from crude oil exports. However, stakeholders had raised concerns about delays and operational constraints for oil firms.

With this latest adjustment, the CBN appears to be striking a balance between regulatory oversight and market flexibility, while signalling a more investor-friendly stance in Nigeria’s foreign exchange management.