Yemisi Izuora
The Central Bank of Nigeria, CBN, has explained that repatriated oil and gas export proceeds would be deployed to in–country for the settlements of Petroleum Tax obligations and settlement of contractors’ invoices.
The Director of Trade and Exchange at the CBN, Dr. Mahmoud Hassan, in a circular, “TED/FEM/PUB/FPC/001/008” and dated May 6, 2024 states that after the initial 50 per cent exports proceeds cash pool allowed for oil and gas companies, the other 50 per cent which must be held in the country for at least 90 days before being taken out of the country could be utilized to settle various obligations.
The CBN earlier circular directed that only 50 per cent of oil and gas export proceeds could be taken out of the immediately earned.
On the other hand it directed, must be held in the country for at least 90 days before being taken away by the companies.
The CBN however, clarified that the 50 per cent that must be held in the country for the given period could be put to use by the firms.
“The initial 50 percent of repatriated exports proceeds can be pooled immediately or as at when required. Banks may submit requests for cash pooling ahead of the expected date of receipt, supported by the required documentation for approval by the CBN.
“The 50 per cent balance of the repatriated exports proceeds could be used to settle financial obligations in Nigeria whenever required during the prescribed 90-day period.” CBN stressed.
Apart from utilizing such repatriated proceeds for tax purposes and payment to contractors, the apex bank explained that they could be used for the payment of royalties, Cash Calls, loans repayment, forex sales at the Nigerian Foreign Exchange Market