Regulatory Alerts2024-05-31 | TED/FEM/PUB/FPC/001/017RE: Further Clarifications on the Circular on Cash Pooling of Repatriated Oil And Gas Export Proceeds by International Oil Companies (IOCs)
The Central Bank of Nigeria issued a circular to authorized dealer banks, clarifying the rules for international oil companies (IOCs) regarding cash pooling of repatriated oil and gas export proceeds. The bank states that 50% of the repatriated export proceeds can be sold to authorized dealers or eligible foreign exchange users. If an IOC has no financial obligations during or after the 90-day retention period, they may also sell the entire 50% balance in the same manner.
CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237800 09 46237804 E-mail address: ted@cbn.gov.ng TED/FEM/PUB/FPC/001/017 May 31, 2024 TO: ALL AUTHORISED DEALER BANKS RE: FURTHER CLARIFICATIONS ON THE CIRCULAR ON CASH POOLING OF REPATRIATED OIL AND GAS EXPORT PROCEEDS BY INTERNATIONAL OIL COMPANIES (IOCs) 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(8) on forex sales at the Nigeria Foreign Exchange Market.
Consequently, we hereby provide the following clarifications.
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The 50% balance of the repatriated export proceeds may be sold to Authorized Dealers or eligible users of foreign exchange with eligible transactions.
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If the IOC does not have any financial obligation to settle with the funds during or after the 90 days retention period, the 50% balance may also be sold wholly as stated in (1) above.
DR. W. J. KANYA FOR: DIRECTOR TRADE AND EXCHANGE DEPARTMEN