CBN unlocks oil dollar flows with removal of cash pooling requirement

…says IOCs may repatriate 100% export proceeds

Nigeria’s Central Bank has removed the cash pooling requirement for International Oil Companies (IOCs), allowing the firms full access to repatriated export proceeds in a move aimed at boosting liquidity and deepening the foreign exchange market.

The directive, issued and signed by Musa Nakorji, Director, Trade and Exchange Department and takes immediate effect and supersedes all previous circulars on cash pooling.

Previously, Authorised Dealer Banks (ADBs) were required to pool 50% of IOCs’ repatriated export earnings, with the remaining 50% retained for 90 days before repatriation.

Related News

Under the new framework, IOCs may repatriate 100% of their export proceeds through ADBs. Banks facilitating these transactions are required to maintain proper documentation and submit monthly reports to the Director of the Trade and Exchange Department.

The move is part of the Central Bank’s broader reforms to liberalise Nigeria’s FX market, increase transparency, and attract more foreign exchange inflows amid ongoing efforts to stabilise the naira. Market analysts say the removal of the cash pooling requirement is expected to make Nigeria’s FX market more competitive and may encourage greater participation from foreign investors.

Nakorji noted that the decision aligns with current market realities and reflects the Bank’s commitment to creating a more flexible and liquid foreign exchange environment.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.