CBN grants full FX access to oil firms in major boost

CBN FX access oil firms policy allows 100% repatriation of export proceeds, boosting liquidity and easing forex constraints

The Central Bank of Nigeria, through its Director of Trade and Exchange Department, Dr Musa Nakorji, has approved full access to foreign exchange earnings for International Oil Companies, allowing 100 per cent repatriation of export proceeds via authorised dealer banks.

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The directive, announced in a circular issued on Wednesday, marks a significant policy shift aimed at improving liquidity and stability in the foreign exchange market.

The CBN FX access oil firms decision forms part of broader reforms to liberalise Nigeria’s forex regime and align it with current market realities.

Dr Musa Nakorji stated that the new framework replaces the 2024 policy, which required oil companies to repatriate only 50 per cent of export proceeds immediately, while the remaining balance was held for 90 days.

Under the revised arrangement, companies now have unfettered access to their full earnings.

The circular noted that authorised dealer banks will facilitate the transactions, ensuring proper documentation and submitting monthly reports to the apex bank.

The updated guideline also supersedes all previous rules governing cash pooling arrangements for oil firms.

The CBN FX access oil firms policy is expected to ease operational constraints for International Oil Companies, many of which had raised concerns over delayed access to foreign exchange under the earlier regime.

Analysts say the move could serve as a significant catalyst for boosting investor confidence and enhancing capital flows into the oil and gas sector.

In addition to improving access, the reform is designed to deepen the foreign exchange market by increasing supply and encouraging more transparent transactions through formal banking channels.

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The Central Bank maintained that all authorised dealer banks must comply immediately, signalling the urgency attached to the policy as Nigeria seeks to stabilise its currency environment and support economic recovery.

Quadri Olaitan