LAGOS, Mar 26 – Nigeria’s central bank has lifted restrictions on the use of oil export earnings, allowing international oil companies to repatriate the full value of their proceeds in a move aimed at improving liquidity and restoring confidence in the foreign exchange market.
In a circular dated March 25, the Central Bank of Nigeria said it had removed the “cash pooling” rule that previously allowed authorised dealer banks to transfer only 50% of oil export proceeds immediately, while holding the balance for up to 90 days.
Under the new directive, companies can now access and repatriate all export revenues through authorised banks without mandatory delays, subject to documentation and monthly reporting requirements.
The policy shift marks a further step in the liberalisation of Nigeria’s foreign exchange regime, particularly for the oil sector, which remains the country’s main source of dollar inflows. However, analysts say the move is unlikely to trigger an immediate surge in FX supply.
The decision also reverses a measure introduced in February 2024, when acute dollar shortages pushed the naira to record lows and prompted authorities to impose temporary controls on export proceeds to stabilise the market.
For oil firms, the change restores flexibility in cash flow management, allowing them to determine how and when to deploy earnings. Industry executives note that easier access to dollar revenues could improve treasury operations and reduce financial risk in Nigeria’s upstream sector.
The central bank said the adjustment forms part of broader reforms to deepen the FX market and align it with current conditions. In recent months, it has also raised open-market rates to attract foreign investment and removed caps on exchange rate spreads in the interbank market.
These measures follow years of foreign exchange pressure linked to weaker oil prices and the economic impact of the COVID-19 pandemic.
