The Central Bank of Nigeria has reversed its policy of cash pooling requirements for International Oil Companies operating in Nigeria, allowing the IOCs to repatriate 100 percent of their exports amid the crude oil price upsurge.
The apex bank disclosed this in a circular on Wednesday signed by its director of trade department, Dr. Musa Nakorji.
According to CBN, the policy reversal is to grant IOCs unfettered access to their repatriated export proceeds.
“The I0Cs may repatriate 100% of their export proceeds through the ADBs, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department,” the circular stated.
This means that CBN has reversed its earlier policy in 2024, allowing Authorized Dealer Banks (ADBs) to cash pool 50 percent of repatriated export proceeds on behalf of IOCs, with the remaining 50 percent retained for 90 days before repatriation.
The move followed CBN’s earlier decision to stop payment of foreign remittances in dollars.
DAILY POST reports that the decision comes at a time crude oil price hit $100 per barrel due to Iran, United States and Israel war.