The Central Bank of Nigeria (CBN) has scrapped the cash pooling requirement for international oil companies (IOCs), granting them full access to their export proceeds.
Cash pooling is a financial arrangement where a company (or regulator) centralises cash from multiple accounts into one place to manage it more efficiently.
The CBN said in a circular signed by Musa Nakorji, director of the trade and exchange department, that the new policy takes immediate effect and supersedes earlier guidelines introduced in 2024, which required banks to pool 50 per cent of repatriated export proceeds on behalf of IOCs, while the balance was retained for 90 days before repatriation.
Under the revised framework, oil firms are now permitted to access and repatriate 100 percent of their export proceeds.
“IOCs are hereby granted unfettered access to their repatriated export proceeds. The IOCs may repatriate 100 percent of their export proceeds through the ADBs,” the circular reads.
According to the CBN, the decision is aimed at further liberalising the foreign exchange (FX) market in line with current realities.
The CBN asked authorised dealer banks (ADBs) to ensure proper documentation of such transactions and submit monthly reports to its trade and exchange department.
