Central Bank lifts mandatory cash consolidation rule for International Oil Companies

CBN

By Emma Ujah, Abuja Bureau Chief

THE Central Bank of Nigeria (CBN) has removed the Cash Pool requirement for export proceeds of International Oil Companies (IOCs).

The decision was conveyed in a circular issued by the Director of Trade and Exchange of the bank, DrMusa Nakorji, yesterday.

It said the decision was “to further liberalise and deepen the market in line with current market realities.”

According to the circular, the IOCs have now been granted unffetered access to their repatriated export proceeds.

The CBN there said, “The IOCs may repatriate 100 percent of their export proceeds through the Authorised Dealer Banks, who shall ensure adequate documentation and submit a monthly report to the Director of Trade and Exchange.”

The bank had in 2024 directed ADBs to cash pool 50 percent of repatriated export proceeds onbehalf of IOCs with the remaining 50 percent retained for 90 days before repatriation.