WED MAY 08 2024-theGBJournal| The Central Bank of Nigeria (CBN) has given international oil companies the green light to repatriate 50% of their proceeds in the first instance and then the other half after 90 days.
The green light was given via CBN circular dated May 6, 2024, and signed by the Director, Trade and Exchange Department, Hassan Mahmud.
The CBN had in February, stopped international oil companies from repatriating 100% foreign exchange proceeds to their parent companies overseas.
The new order, according to the CBN, ”follows 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.”
In response the CBN said, ”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.”
According to the CBN, ”the 50% balance of the repatriated export proceeds could be used to settle financial obligations in Nigeria, whenever required, during the prescribed 90-days period.”
Petroleum profit tax, royalties, domestic contractor invoices, cash call, domestic loan Principal and Interest Payment, transaction taxes (including Nigerian Content Development (NCD) levy, education tax and forex sales at the Nigerian Foreign Exchange Market are all expenses eligible for settlement from the balance 50% under the new order.
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