The Central Bank of Nigeria (CBN) has granted International Oil Companies (IOCs) unrestricted access to their foreign exchange earnings, allowing them to repatriate 100% of export proceeds through authorised dealer banks.
The directive, issued via the apex bank’s Trade and Exchange Department, marks a decisive shift toward deeper foreign exchange (FX) market liberalisation.
Under the new policy, IOCs can now fully access and transfer their export earnings without the previous restrictions that split access into phases.
This replaces the 2024 framework, which required:
- 50% immediate access to export proceeds
- 50% locked for 90 days before repatriation
With the latest move, the CBN has effectively scrapped all prior limitations, granting oil firms full control over their FX inflows.
According to the CBN, the policy is part of broader reforms aimed at:
- Boosting FX liquidity
- Stabilising the naira
- Attracting foreign investment
Authorised dealer banks have been directed to ensure proper documentation and submit regular reports, while complying immediately with the new guidelines.
The decision is expected to:
- Improve investor confidence, especially among multinational oil firms
- Ease operational bottlenecks in Nigeria’s oil and gas sector
- Enhance FX inflows into the formal market
However, it also signals a trade-off. While liberalisation may attract capital, it could increase short-term pressure on FX reserves if outflows rise sharply.
The move underscores the CBN’s ongoing pivot toward a more market-driven FX regime, as policymakers seek to balance liquidity, stability, and investor confidence in a volatile global environment.
For Nigeria, the key question remains whether such reforms will translate into sustained inflows and long-term economic stability, or simply ease capital exit for foreign players.
