₦airaland Forum

The Central Bank of Nigeria on Friday, announced that international oil companies can sell their retained 50 per cent of repatriated export proceeds in the Nigerian Foreign Exchange Market.

This decision comes after the CBN placed limits on the transfer of crude export proceeds by IOCs to offshore parent company accounts on February 14.

The apex bank noted that these transfers affected domestic foreign exchange market liquidity and sought to reverse the trend through ongoing reforms.

According to a circular signed by the Director of Trade and Exchange Department, W.J. Kanya, banks can only transfer 50 per cent of repatriated export proceeds to IOCs’ offshore parent company accounts, with the remaining 50 per cent repatriated after 90 days.

However, on May 6, the CBN reviewed this directive, allowing IOCs to repatriate 50 per cent of their export proceeds immediately or as needed, while the remaining 50 per cent can be used to settle financial obligations in Nigeria.

This move aims to balance the needs of IOCs with the need to maintain liquidity in the domestic foreign exchange market.


By allowing IOCs to sell their retained proceeds in the Nigerian market, the CBN seeks to boost liquidity and promote economic growth.


However, in a new development, CBN said following the release of the circular “dated May 06, 2024, referenced TED/FEM/PUB/FPC/001/008, in respect of Cash Pooling by banks on behalf of IOCs, we received several requests for clarification on item No 3 ( on forex sales at the Nigeria Foreign Exchange Market”.

Providing more clarifications, the apex bank said the “50% balance of the repatriated export proceeds may be sold to Authorized Dealers or eligible users of foreign exchange with eligible transactions”.

“If the IOC does not have any financial obligation to settle with the funds during or after the 90-day retention period, the 50% balance may also be sold wholly as stated in (1) above,” CBN said.

Some of the financial obligations mentioned by the CBN are the balance for cash calls, domestic loan principal and interest payments, transaction taxes (including the Nigerian Content Development Levy) and education tax

MrProlific95:
Tinubu government of trial and error,

with the way the man was desperate to be President, you would think he had a blueprint walahi.

MrProlific95:
Tinubu government of trial and error,

with the way the man was desperate to be President, you would think he had a blueprint walahi.

MrProlific95:
Tinubu government of trial and error,

with the way the man was desperate to be President, you would think he had a blueprint walahi.

treesun:
https://punchng.com/cbn-permits-international-oil-firms-to-sell-50-of-proceeds/

Jemex003:
You should blame your father or the fathers in your family not Tinubu cuz what were they doing with their life when Tinubu is leading us Today but hope not what I’m thinking

MrProlific95:
Tinubu government of trial and error,

with the way the man was desperate to be President, you would think he had a blueprint walahi.

Macphenson:
Cardoso already said they have no magic wand meaning they have run out of ideas on how to manage our economy. The trial and error continues on our economy.

Ekakamba:
Pls what is/are the disadvantage(s) of this new policy by CBN.

Abeg any body fit quote me. I just wan know.

PHAYOL81:
That's not bad too, so as to aid in stabilizing the FX market and decreasing the pressure.

Metordman:
Cardozo has nothing new to offer anymore. All ideas exhausted. Dead CBN, dead naira, Dead caricature president. May Thunder without break strike Cardozo,Buhari, Tinubu and Emiefele

onatisi:
It is meant to bring down the FX rate in Nigeria if properly implemented . It may likely increase FX supply in the market

Faiththatworks:
God bless Mr Cardoso.
This is another wonderful news from the CBN,for those who don't understand what's happening,the oil companies used to sell all their proceeds to the CBN who in turn will sell to the banks and Bureau D change.
This singular move has eliminated the CBN who used to act as the middle man,now the money can flow directly to the Banks and Bureau D change.
I predict Very soon the country will be awash with Dollars once Dangote releases his first liter of petrol into the market.
The CBN understands It's just a matter of weeks before the Usd begins to fall,thus it's no longer interested with what the IOCs do with their income.
Like Mr Otedola who saw the future and pulled out totally from the Importation and Sales of Diesel,I urge every Usd speculator to take heed and stop this devilish practice before the force of Gravity hits them.
God bless Nigeria.

Faiththatworks:
God bless Mr Cardoso.
This is another wonderful news from the CBN,for those who don't understand what's happening,the oil companies used to sell all their proceeds to the CBN who in turn will sell to the banks and Bureau D change.
This singular move has eliminated the CBN who used to act as the middle man,now the money can flow directly to the Banks and Bureau D change.
I predict Very soon the country will be awash with Dollars once Dangote releases his first liter of petrol into the market.
The CBN understands It's just a matter of weeks before the Usd begins to fall,thus it's no longer interested with what the IOCs do with their income.
Like Mr Otedola who saw the future and pulled out totally from the Importation and Sales of Diesel,I urge every Usd speculator to take heed and stop this devilish practice before the force of Gravity hits them.
God bless Nigeria.

treesun:
https://punchng.com/cbn-permits-international-oil-firms-to-sell-50-of-proceeds/