The Central Bank of Nigeria (CBN) has revised its guidelines on foreign exchange (FX) repatriation for oil firms, allowing them to spend 50 per cent of the repatriated export proceeds on financial obligations.
Previously, the CBN had halted international oil companies from repatriating 100 per cent of their foreign exchange proceeds to their parent companies overseas in one go.
Now, according to a circular signed by Hassan Mahmud, Director of the Trade and Exchange Department at the CBN, oil firms can repatriate 50 per cent of their proceeds initially and the remaining half after 90 days.
The circular stated,“Following recent enquiries by banks and other stakeholders on our circular referenced TED/FEM/PUB/FPC/001/004, in respect of Cash Pooling requests by banks on behalf of IOCs, we provide further clarifications as follows:
“The initial 50 per cent of the repatriated proceeds can be pooled immediately or as at when required. Banks may submit the request for cash pooling ahead of the expected date of receipt, supported by the required documentations, for approval by the Central Bank of Nigeria.
“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.”
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