The Central Bank of Nigeria (CBN) has executed a decisive pivot in its foreign exchange management strategy, granting International Oil Companies (IOCs) 100% access to their export proceeds. In a circular released late Wednesday, March 25, 2026, the apex bank officially scrapped the controversial “cash pooling” rule, a move that allows oil firms to repatriate their entire foreign exchange earnings without the previously mandated 90-day waiting period for half of those funds.
The directive, signed by the Director of the Trade and Exchange Department, Dr. Musa Nakorji, takes immediate effect and dismantles the restrictive framework introduced in early 2024. Under the old regime, IOCs were permitted to pool only 50% of their repatriated export proceeds immediately to meet offshore obligations, while the remaining 50% was “trapped” in Nigerian banks for three months.
The new policy removes these “clogs,” granting what the CBN describes as “unfettered access” to export earnings through authorized dealer banks. This shift is intended to improve the investment climate for upstream operators who have long complained that liquidity restrictions hindered their ability to fund complex offshore drilling campaigns and meet global vendor obligations.
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While the move is a win for corporate ease of doing business, it places a new transparency burden on commercial banks. Authorized dealers are now required to maintain rigorous documentation and submit detailed monthly reports to the CBN to prevent the sudden outflow of funds from destabilizing the local currency. It is seen by energy analysts as a bold bet on market realism. They argue that by allowing 100% repatriation, the CBN is signaling to the world that Nigeria is no longer a ‘liquidity trap,’ a standpoint which is essential for Nigeria to reverse the seven-month decline in oil production that saw output hit 1.46 million barrels per day in January.
The timing of this liberalization is critical as Nigeria enters a period of significant economic consolidation. With gross external reserves currently standing at $50.45 billion, the CBN appears confident enough to release the “liquidity brakes” on the oil sector. However, the move has triggered mixed reactions in the financial markets. While investors have hailed the decision as a precursor to increased Foreign Direct Investment (FDI), some domestic manufacturers worry that the immediate exit of large forex volumes by oil giants could create short-term “supply droughts” for small and medium enterprises (SMEs) relying on the official window.
As of Thursday morning, March 26, 2026, shares in major energy-linked firms on the Nigerian Exchange (NGX) showed positive movement in anticipation of improved cash flows. The CBN has emphasized that this policy is consistent with “current market realities” and forms part of a broader roadmap to ensure exchange rate stability through increased production rather than artificial restrictions. For the IOCs, the challenge now shifts from regulatory hurdles to operational ones, specifically, whether they can leverage this new financial freedom to finally ramp up production toward the government’s ambitious 1.84 million bpd target for the year.
