The Central Bank of Nigeria, CBN has eased its restrictions on repatriating oil and gas export foreign exchange proceeds by International Oil Companies, IOCs operating in the country.
In a recent circular by its Director of Trade and Exchange, Dr Mahmoud Hassan, the CBN said that IOCs can now use oil and gas export proceeds in the country to settle petroleum tax obligations and contractors’ invoices.
In a circular in February 2024, the bank had directed that only 50 per cent of oil and gas export proceeds could be taken out of the immediately earned.
The apex bank also directed that revenue from OICs must be held in the country for at least 90 days before being taken away by the companies.
However, in the latest circular, CBN clarified that the firms could use the 50 per cent held in the country for the given period.
“The initial 50 per cent of repatriated export proceeds can be pooled immediately or as required.
“Banks may submit requests for cash pooling ahead of the expected date of receipt, supported by the required documentation for approval by the CBN.
“The 50 per cent balance of the repatriated export proceeds could be used to settle financial obligations in Nigeria whenever required during the prescribed 90-day period.”
Apart from utilizing such repatriated proceeds for tax purposes and payment to contractors, the apex bank explained that they could pay royalties, cash, calls, loan repayment, and forex sales at the Nigerian Foreign Exchange Market.
