By Emma Ujah, Abuja Bureau Chief

The Central Bank of Nigeria (CBN) yesterday relaxed restriction it placed on repatriation of oil and gas export proceeds by International Oil Companies, IOCs.

Among other things the CBN said that IOCs can now use  oil and gas export proceeds in–country for the settlements of Petroleum Tax obligations and  settlement of contractors’ invoices.

The bank had in an earlier circular directed that only 50 percent of oil and gas export proceeds could be taken out of the immediately earned.

The second half, it directed, must be held in the country for at least 90 days before being taken away by the companies.

However, in the latest circular, CBN has clarified that the 50 percent that must be held in the country for the given period could be put to use by the firms.

Announcing the development in a circular, Dr. Mahmoud Hassan, Director of Trade and Exchange, CBN, said:  “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 percent balance of the repatriated exports proceeds could be used to settle financial obligations in Nigeria whenever required during the prescribed 90-day period.”

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.