The Central Bank of Nigeria (CBN) has said it has cancelled the cash pooling requirement for international oil companies (IOCs), granting them complete 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.
In a circular issued on Wednesday, CBN said the new policy supersedes earlier guidelines introduced in 2024, which required banks to pool 50 percent of repatriated export proceeds on behalf of IOCs, while the balance was retained for 90 days before repatriation.
But, under the revised framework, oil firms are now permitted to access and repatriate 100 percent of their export proceeds.
The directive, signed by Musa Nakorji, director of the trade and exchange department, takes immediate effect.
“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.
The financial regulator said the decision is aimed at further liberalising the foreign exchange (FX) market in line with current realities.
The CBN told authorized dealer banks (ADBs) to ensure proper documentation of such transactions and submit monthly reports to its trade and exchange department.
The bank said the directive overrides all previous circulars relating to cash pooling.
The policy is part of broader efforts by the CBN to deepen the Nigerian FX market and enhance efficiency in FX transactions.
On February 14, 2024, CBN placed limits on the transfer of proceeds from crude exports by IOCs to offshore parent company accounts.
CBN said the transfer of export proceeds by the IOCs has an impact on liquidity in the domestic FX market.
