Financial and energy sector experts have welcomed the Central Bank of Nigeria’s (CBN) recent directive allowing International Oil Companies (IOCs) full access to their export earnings, describing it as a critical step toward revitalising investment in Nigeria’s upstream petroleum sector.
This is according to a report by Udo Udoma & Belo-Osagie, titled ‘A Strategic Reset for Nigeria’s Upstream Sector: Implications of the CBN’s 2026 Cash Pooling Reforms’, authored by Folake Elias-Adebowale and Similoluwa Ogunlela.
The analysts say the policy enhances liquidity, operational efficiency, and investor confidence in the nation’s oil and gas industry.
The move comes amid ongoing efforts by the CBN to reform the foreign exchange (FX) market and align regulatory policy with sector realities.
What the report is saying
According to the experts, the policy shift signals a major milestone in Nigeria’s FX regulatory framework.
- “For the Nigerian economy, the development reinforces ongoing efforts to deepen the FX market, strengthen investor confidence and position Nigeria as a competitive destination for upstream oil and gas investment.”
- “For IOCs and investors, the restoration of full access to export proceeds enhances liquidity management, improves cash flow predictability and supports more efficient capital allocation decisions within global portfolios,” the report noted.
The directive allows IOCs to retain 100 per cent of their export proceeds.
- The reform reflects the broader evolution of Nigeria’s FX reform programme, designed to improve liquidity management and operational planning for upstream oil and gas firms.
The policy is expected to mitigate historical constraints on cash flow and foreign currency access that have previously discouraged large-scale upstream investments.
Backstory
In March, the CBN approved the full repatriation of export proceeds by International Oil Companies (IOCs), allowing them to access 100% of their foreign exchange earnings through authorised dealer banks.
