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CBN reviews guidelines on repatriation of FX proceeds by oil firms

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The Central Bank of Nigeria (CBN) has said oil firms can now spend 50% balance of the repatriated export proceeds on financial obligations.

According to CBN, international oil firms could repatriate 50% of their proceeds in the first instance and then the other half after 90 days.

The apex bank in February stopped international oil companies from repatriating 100% foreign exchange proceeds to their mother companies overseas at once.

In a circular signed by the Director, Trade and Exchange Department, Hassan Mahmud, the CBN stated thus:

“Following the 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% 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% 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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