The Central Bank of Nigeria, CBN, has directed International Oil Companies to henceforth repatriate 50 percent of their revenue to Nigeria.
The bank also announced an end to cash Personal Travel Allowance, PTA, and Business Travel Allowance, BTA, as such allowances are henceforth to be obtained in cards.
CBN’s Director of Trade and Exchange, Dr. Hassan Mahmud, issued two different circulars on the two measures which have been released to Dealer banks.
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Prior to the directives, IOCs paid their FX earnings 100 percent directly to their parent companies through what is called Subsidiary pools, without the Nigerian FX market benefitting from their export proceeds.
Under the new policy, the CBN said IOCs will no longer be allowed to remit 100% of their forex proceeds to their parent company abroad as soon as they are earned.
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