- The CBN has approved full repatriation of export proceeds for International Oil Companies
- The new policy replaces a 2024 rule that restricted access to 50 per cent of earnings
- Oil firms can now access 100 per cent of their forex through authorised dealer banks
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology, and macroeconomic trends in Nigeria.
The Central Bank of Nigeria (CBN) has approved the full repatriation of export proceeds for International Oil Companies (IOCs), allowing them to access 100 per cent of their foreign exchange earnings through authorised dealer banks.
The decision, announced in a circular issued by the apex bank’s Trade and Exchange Department, marks a shift in Nigeria’s foreign exchange policy and is aimed at improving market liquidity and attracting investment, The Sun reported.
Source: UGC
According to the circular signed by the department’s director, Musa Nakorji, the new directive replaces a 2024 policy that limited IOCs to repatriating only 50 per cent of their export proceeds upfront.
Under the previous rule, the remaining funds were required to stay within the domestic banking system for 90 days before they could be accessed.
The CBN said the updated policy is designed to “further liberalise and deepen the market in line with current market realities.”
Guidelines for fund utilisation
The apex bank stated that IOCs can repatriate their earnings through authorised dealer banks, which are required to ensure proper documentation and submit monthly reports to the regulator.
It also outlined approved uses for such funds within Nigeria, including payments for petroleum profit tax, royalties, domestic contractors, and cash calls.
Other permitted uses include servicing domestic loans, settling transaction and education taxes, and participating in foreign exchange sales within the Nigerian market.
Move seen as boost for investor confidence
Industry observers say the policy change signals Nigeria’s intention to create a more investor-friendly environment in the oil and gas sector.
Analysts noted that easing restrictions on capital flows could encourage IOCs to sustain and expand their investments in the country.
An industry expert said the move reflects efforts by the central bank to align its policies with market conditions and improve Nigeria’s competitiveness in attracting global energy investors.
Source: Getty Images
Impact on FX market and Naira
Market analysts also believe the full repatriation policy could improve liquidity in the foreign exchange market and support the stability of the naira.
They added that the new framework gives oil companies greater flexibility in managing their operations and financial obligations.
The development is expected to strengthen Nigeria’s position as a key investment destination in Africa’s oil and gas sector.
FG cuts approval time for idle oil wells
Legit.ng earlier reported that the federal government has reduced the approval timeline for reactivating idle oil wells from several weeks to a few hours as part of efforts to increase crude oil production and benefit from favourable global prices.
The initiative, driven by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), is aimed at helping operators quickly resume production from dormant assets.
The policy shift is already attracting attention, particularly from indigenous oil companies looking to revive suspended or underutilised wells. Industry sources noted that reactivating dormant wells is generally faster and less capital-intensive than drilling new ones, making it an attractive option for operators seeking quick returns.
Source: Legit.ng
