CBN Halts Cash Pooling Rule, Grants IOCs Full Access to Export Proceeds

Nume Ekeghe

The Central Bank of Nigeria (CBN) has removed the cash pooling requirement for International Oil Companies (IOCs), granting them full and immediate access to their repatriated export proceeds in a move aimed at deepening liquidity and enhancing efficiency in the foreign exchange market.

The decision marks a significant shift from earlier guidelines introduced in 2024, which required Authorised Dealer Banks (ADBs) to pool 50 per cent of export proceeds on behalf of IOCs, while the balance was held for 90 days before repatriation.

In a new circular, signed by the Director Trade and Exchange Department, Musa Nakorji, the CBN noted that its decision is in line with ongoing reforms to liberalise the FX market and align policy with prevailing market conditions.

It stated: “As part of the reforms aimed at creating more liquidity and stability in the Nigerian Foreign Exchange Market, the Bank issued two circulars in 2024, allowing Authorised Dealer Banks (ADBs) to cash pool 50 per cent of repatriated export proceeds on behalf of International Oil Companies (IOCs) with the remaining 50 per cent retained for 90 days before repatriation.

“However, to further liberalize and deepen the market in line with current market realities, IOCs are hereby granted unfettered access to their repatriated export proceeds. The 1OCs may repatriate 100 per cent of their export proceeds through the ADBs, who shall ensure adequate documentation and submit a monthly report to the Director, Trade & Exchange Department.”

The CBN noted that the directive supersedes all previous circulars on cash pooling and takes immediate effect.

It said, “Please note that this provision supersedes all other circulars issued by the Bank on Cash Pooling. All Authorised Dealer Banks are to note and be guided accordingly, as this directive takes immediate effect.”