CBN scraps cash pooling rule, grants oil firms full access to export proceeds

The Central Bank of Nigeria (CBN) has removed its cash pooling requirement for international oil companies (IOCs), allowing them full access to proceeds from crude oil exports.

Cash pooling typically involves consolidating funds from multiple accounts into a central account for easier management. Under the previous guidelines introduced in 2024, banks were required to retain 50 percent of repatriated export proceeds on behalf of IOCs, while the remaining balance could only be accessed after 90 days.

In a circular issued on Wednesday, the CBN said the new directive replaces those earlier rules, now permitting oil firms to access and repatriate 100 percent of their export earnings without restriction.

The circular, signed by Musa Nakorji, director of the trade and exchange department, stated that the policy 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 said.

The apex bank noted that the move is part of ongoing efforts to liberalise Nigeria’s foreign exchange market and improve the efficiency of FX transactions.

It also directed authorised dealer banks (ADBs) to ensure proper documentation of all transactions and submit monthly reports to its trade and exchange department.

According to the CBN, the new policy overrides all previous circulars related to cash pooling and aligns with broader reforms aimed at strengthening the country’s FX market.

In February 2024, the regulator had imposed restrictions on the transfer of crude export proceeds by IOCs to offshore parent company accounts.