The Central Bank of Nigeria has revised its directive on the repatriation of export proceeds by international oil companies.
This was disclosed in a statement via a circular signed by the director of trade and exchange.
The statement reads “The initial 50% 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 documentation, for approval by the Central Bank of Nigeria.
“The 50% balance of the repatriated export proceeds could be used to settle financial obligations in Nigeria, whenever required, during the prescribed 90-day period.”
The Central Bank of Nigeria has stated that IOCs can also make use of the balance on cash calls, domestic loan principal and interest payments, transaction taxes such as Nigerian Content Development N.C.D. levy, education tax, or foreign exchange sales in Nigeria’s foreign exchange market.
Recall the CBN had imposed a limit on the transfer of proceeds from crude exports by IOCs to offshore parent company accounts on February 15.
The Central Bank has stated that there is an impact on liquidity in the national foreign exchange market due to the transfer of funds by IOCs.
The financial regulator allowed banks to only repatriate 50 per cent of export proceeds, on behalf of the IOCs, to their offshore accounts, while the remaining 50 per cent could be repatriated after 90 days.
