KEY POINTS

• CBN grants IOCs full export proceeds repatriation rights.
• MANEG warns policy widens Nigeria’s non-oil export gap.
• LUBCON backs CBN move, citing forex availability boost.

The Central Bank of Nigeria handed International Oil Companies a significant concession last week, scrapping the cash pooling requirement on their foreign currency inflows and granting them the freedom to retain and repatriate 100 percent of export earnings through authorized dealer banks. The oil sector welcomed the move. Non-oil exporters did not.

Benedict Obhiosa, executive secretary of the Manufacturers Association of Nigeria Export Group, said the decision signals a broader push toward a more liberal foreign exchange regime. But he was quick to name what he sees as a structural blind spot: the policy hands oil companies a meaningful advantage while leaving non-oil exporters standing on the outside looking in.

A policy that tilts the playing field

“This move highlights a clear imbalance, as non-oil exporters, who are critical to Nigeria’s diversification agenda, are not given comparable incentives,” Obhiosa told Vanguard. “This could reinforce the country’s dependence on oil exports and weaken ongoing efforts to broaden the export base.”

He acknowledged the policy could lift investor confidence and pull fresh capital into the oil sector. At the same time, he warned that allowing more foreign exchange earnings to leave Nigeria could squeeze domestic supply and add pressure on the naira.

Obhiosa called on policymakers to close the gap, arguing that balanced incentives across sectors are essential if Nigeria is serious about building a diversified and resilient economy.

Industry voices back the decision

Not everyone in manufacturing shares that concern. Mashood Sanni, sales and marketing manager at LUBCON Group, said the CBN’s decision arrives at the right moment, especially for indigenous manufacturers that depend on imported base oils and additives to keep production lines running.

“This initiative will improve forex availability, which is crucial for indigenous lubricant manufacturers that rely on imported base oils and additives,” Sanni said. “It will ease procurement challenges, boost production capacity and enhance competitiveness in both domestic and export markets.”

The divide between those two positions captures a familiar tension in Nigeria’s forex policy: relief for one sector can quietly shift the burden onto another. Non-oil exporters are now watching to see whether policymakers will return with a follow-up that levels the field.