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CBN Scraps Cash Pool Rule for Oil Firms, Signals Fresh FX Market Flexibility

Published by Samuel Ayomide on March 27th, 2026.

The Central Bank of Nigeria (CBN) has scrapped the cash pooling requirement previously imposed on International Oil Companies (IOCs), granting them full access to their export proceeds.

The directive was communicated in a circular signed by the Director of Trade and Exchange, Dr. Musa Nakorji, as part of efforts to further liberalise the foreign exchange market and align with prevailing economic realities.

With the new policy, IOCs are now allowed to repatriate 100 per cent of their export earnings through authorised dealer banks without restrictions. The banks, however, are mandated to ensure proper documentation of such transactions and submit monthly reports to the CBN for monitoring purposes.

According to The Punch, the development represents a shift from the 2024 policy which required authorised dealer banks to pool 50 per cent of export proceeds on behalf of oil firms, while the remaining 50 per cent was held for 90 days before repatriation. Industry stakeholders had raised concerns that the arrangement limited liquidity and discouraged investment.

Similarly, BusinessDay noted that the removal of the restriction is expected to improve investor confidence and encourage greater participation by multinational oil companies in Nigeria’s foreign exchange market.

Analysts who spoke to Nairametrics also suggested that the move could enhance dollar inflows into the official market, as oil firms may now be more willing to channel their proceeds through formal banking systems.

The apex bank stated that the policy change is part of its ongoing reforms aimed at deepening the foreign exchange market, improving liquidity, and ensuring a more efficient system.

Market observers say the impact of the decision will become clearer in the coming months as stakeholders assess its effect on exchange rate stability and capital inflows.