According to the Central Bank of Nigeria, oil companies are allowed to allocate 50% of their foreign exchange earnings towards fulfilling their financial commitments.
The Central Bank of Nigeria (CBN) has provided additional information regarding how international oil companies (IOCs) can use foreign exchange earnings.
The circular has outlined that 50% of the repatriated funds can be utilized by oil companies to fulfill their financial responsibilities in Nigeria as required, over a designated 90-day timeframe.
“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% of the repatriated proceeds can be pooled immediately oras 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.
“The underlisted expenses are eligible for settlement from the balance 50%:” the statement concludes
