Business
Law Firm Applauds Granting IOCs 100% Access to Export Earnings
The recent move by the Central Bank of Nigeria (CBN) to grant International Oil Companies (IOCs) access to 100 percent of their export proceeds mark a decisive shift in the country’s foreign exchange management strategy, experts at Udo Udoma & Belo-Osagie have said.
Describing the policy as a turning point for upstream investment competitiveness, the corporate and commercial law firm, covering energy, finance, telecoms, cross-border transactions, among others, stated that the development shifted the country from economic controls to investor-friendly FX framework.
In a policy brief, titled, “A Strategic Reset for Nigeria’s Upstream Sector: Implications of the CBN’S 2026 Cash Pooling Reforms,” the firm maintained that for banks, that also implied a heavier compliance burden, with potential sanctions for lapses under existing foreign exchange regulations.
In a circular issued on March 25, 2026, the apex bank had dismantled the cash pooling restrictions introduced in 2024, effectively allowing oil firms to freely repatriate all export earnings without retention requirements.
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The directive, which took immediate effect, replaced earlier rules that mandated oil companies to retain half of their proceeds within the domestic banking system for up to 90 days.
According to Udoma & Belo-Osagie, the development reflects a broader recalibration of policy priorities, shifting from an earlier emphasis on foreign exchange liquidity retention to a more market-oriented framework designed to attract and sustain capital inflows into Nigeria’s oil and gas sector.
The law firm stated that the 2024 framework emerged at a time of acute foreign exchange pressures, when authorities sought to stabilise the naira and deepen liquidity by temporarily restricting capital outflows. Under that regime, authorised dealer banks were permitted to pool only 50 per cent of export proceeds on behalf of oil companies, with the balance subject to delayed repatriation.
While that approach supported short-term macroeconomic stability, Udo Udoma and Belo-Osagie argued that it also introduced operational constraints for international oil companies, particularly in managing global treasury functions and meeting financing obligations tied to upstream projects.
The new directive, however, restored full treasury flexibility, aligning Nigeria’s regulatory environment with prevailing global practices in the oil and gas industry, the firm stated. It said the policy was also critical at a time when competition for upstream capital had intensified, with investors increasingly favouring jurisdictions that offered predictable and efficient capital mobility.
Udoma & Bello-Osagie stated that the removal of cash pooling requirements would enhance liquidity management for oil firms, improve cash flow predictability, and simplify intercompany funding structures, all of which were essential for large-scale exploration and production investments.
The firm added that the policy also signalled regulatory responsiveness, indicating that authorities are willing to adapt frameworks in line with evolving market conditions and stakeholder engagement.
But despite the liberalisation, the firm said the central bank had retained strict compliance obligations for authorised dealer banks, which must now ensure proper documentation of all transactions and submit monthly reports to the regulator’s Trade and Exchange Department. It explained that this marked a transition from pre-transaction approvals to a post-transaction monitoring system aimed at maintaining transparency without stifling operational efficiency.
Udoma & Bello-Osagie stated, “In practical terms, the directive restores full treasury flexibility for IOCs while maintaining a structured compliance and reporting framework through ADBs.
“The removal of the cash pooling requirement is a significant liberalisation measure with several important legal and commercial consequences, particularly within the upstream petroleum sector where export proceeds underpin project economics.”
On the implications for IOC operations and investment agreements, the brief added, “IOCs that have incorporated the previous cash pooling framework into their intercompany treasury arrangements, joint operating agreements, or financing documents should review whether any consequential amendments are required.
“In particular, where FX repatriation timelines and retentions were expressly contemplated in loan covenants, offtake arrangements, or cash waterfall provisions, legal counsel should assess the impact of this change.
“Project finance structures, reserve-based lending arrangements and upstream development financing models may also require recalibration to reflect restored cash flow flexibility and revised assumptions around fund mobility.”
Importantly, it stated that the removal of cash pooling restrictions operated alongside existing statutory obligations, including domiciliary account requirements and local content considerations, reinforcing an integrated and commercially responsive regulatory environment.
The brief said, “For the Nigerian economy, the development reinforces ongoing efforts to deepen the FX market, strengthen investor confidence and position Nigeria as a competitive destination for upstream oil and gas investment.
“For IOCs and investors, the restoration of full access to export proceeds enhances liquidity management, improves cash flow predictability and supports more efficient capital allocation decisions within global portfolios.”
Business
NUPRC Outlines Major Offshore Investment Pipelines
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled a pipeline of major offshore projects with the potential to attract significant new investment into Nigeria’s upstream petroleum sector.
This is as the commission has intensified efforts to convert the country’s substantial hydrocarbon resources into producing assets and sustainable economic value, the NUPRC said in a statement.
According to the statement, Nigeria’s upstream investment outlook was presented at the Nigeria Investment Forum 2026 in New York by the Commission Chief Executive (CCE), Oritsemeyiwa Eyesan.
Eyesan, who was represented by the Executive Commissioner, Corporate Services and Administration, Dr. Kelechi Ofoegbu, highlighted the emerging investment opportunities across Nigeria’s offshore, gas and brownfield assets, noting that the combination of regulatory reforms, improved project economics and a growing pipeline of development-ready assets is creating new opportunities for investors and industry partners.
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A key feature of the presentation, it said, was the identification of 22 major offshore projects, comprising 12 deepwater and 10 shallow-water developments, as part of the pipeline capable of driving substantial new capital into the sector.
According to the commission, the projects include major developments such as Bonga Southwest, Aparo, Zaba Zaba, Owowo, Bosi and Egina South.
The NUPRC also highlighted recent capital commitments across projects including Bonga North, Obeta Gas Development, HIN Associated Gas Development and Iseni Gas Development, demonstrating the movement of investment interest towards actual project development.
Business
Petrol, Diesel Prices Rise 86% in Eight Months – Report
The average prices of petrol and diesel have risen by 86 percent in 2026, with the two products reaching their highest average price levels for the year by September 22, according to the latest fuel price trend report by priceandpromo.
The report stated that the average price of Premium Motor Spirit, popularly known as petrol, rose to N1,378 per litre by September 22, while automotive gas oil, commonly known as diesel, increased to N1,899/litre.
It puts the increase in the price of petrol at 80.8 percent from the January 13 base, while diesel recorded a 91.8 percent rise over the same period. The average increase of the two products is 86.3 percent, which rounds to 86 percent.
The report stated, “The latest priceandpromo fuel price trend shows renewed upward movement following the relative stability observed between April and July.
“Petrol rose to an average of N1,378 per litre by 22 September, while diesel increased to an average N1,899 per litre, the highest average price levels recorded for both products in the displayed 2026 series.”
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According to the report, petrol prices had increased sharply in March before remaining relatively stable at elevated levels between April and July. “After the sharp March increase, fuel prices stabilised at higher levels through July before rising again in August and September,” it added.
The renewed increase came amid heightened volatility in the international energy market, according to the report, which noted that the domestic market remained exposed to movements in global energy costs.
“The renewed increase comes amid heightened global energy-market volatility, highlighting the domestic market’s continued exposure to shifts in international energy costs,” the report added.
The report indicated that the latest movement in fuel prices could have wider implications for transportation, logistics and the cost of distributing goods, given the importance of petrol and diesel to economic activities.
The report noted that fuel prices remained an important channel through which changes in energy costs could feed into transportation and other consumer costs.
The report further warned that the renewed increase in both products is a development to monitor because of its potential implications for the movement of people and goods.
It said, “The renewed increase in both petrol and diesel is therefore an important market signal to watch, particularly for its potential implications for mobility, logistics costs and the wider cost of moving goods through the market.”
The report’s figures show that the increase in diesel prices has outpaced that of petrol, with AGO rising by 91.8 percent compared with PMS’s 80.8 percent increase.
Courtesy – The PUNCH
Business
NNPC Ltd Celebrates Second Year of Zero Voluntary Resignations
State oil major, the Nigerian National Petroleum Company Limited (NNPC Ltd) has credited staff confidence in its future, career opportunities, job security and the desire to be part of its transformation into a commercially driven energy company, as top on the brand characteristics that helped it record a second successive year of zero voluntary resignations.
The disclosure was contained in NNPC Limited’s 2025 Annual Financial Report, which showed that the company recorded a zero percent withdrawal-from-service rate across all employee age bands below 60 years in both 2024 and 2025.
The report showed that employees aged 30 years and below, 31–39, 40–44, 45–49, 50–54 and 55–59 all recorded a zero percent withdrawal-from-service rate in 2025. The same age groups also recorded zero per cent in 2024, indicating that there were no voluntary exits recorded across the categories during the two-year period.
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The only 100 percent rate recorded in the table was for employees aged 60, reflecting retirement at the applicable age rather than voluntary resignation.
On the development, NNPC Ltd’s Chief Corporate Communications Officer, Andy Odeh, said the retention rate was an indication of stability within the organisation and suggested that employees continued to see opportunities for career growth and professional fulfilment in the company.
“If people in an organisation for the whole year don’t exit, it also means that the organisation is stable. The organisation can be trusted and that colleagues see prospects going forward,” Odeh said.
He shared his views during an NNPC Limited X Spaces conversation on its 2025 audited financial statements, stating that the company had a pool of highly mobile and ambitious employees who were prepared to support its transition and growth, adding that retention in the energy industry was not determined by salaries alone.
“One of the biggest opportunities the company has had is the fact that you have very strong, highly mobile, in terms of ambition and support for the business, talent within the organisation. But there are a few things that I just want to share with you,” he said.
According to Odeh, employees in the energy industry also considered job security, opportunities for career development, a safe working environment and a sense of purpose when deciding whether to remain with an organisation.
“When you see an opportunity to grow your career, because indeed in the energy industry, for most people it’s not about salary; they look for security, they look for opportunities to develop, they look for a safe work environment, and of course they want to work in a place that gives them purpose,” he said.
He said the transformation of the NNPC Ltd from a corporation into a limited liability company had created a unique opportunity for employees to participate in what could become a significant chapter in the history of Nigeria’s energy industry.
“Where we are as an organisation today, moving from a corporation to a company, the company is at the cusp of history, and anybody who is in the organisation today wants to be part of the huge success,” Odeh said.
“When all of these things come together, people have strong reasons to stay, and I believe that’s why people are staying and wanting to leave,” he added.
Odeh said the company’s challenge was therefore not simply to prevent employees from leaving but to understand and strengthen the factors that made them want to remain.
“Consider that taking retention for granted. The real trick is to get the reasons to stay, rather than the reasons to leave. So where we are now, a lot of people stay and want to stay because they want to be part of history, they want to be part of a career that is clear and prosperous at the end of the day,” he said.
He added that the company’s broader purpose of contributing to the country’s development also provided an incentive for employees to remain with the organisation. “Success at an energy company, building a better country, and making an impact in the world,” he said.
The staff retention data comes as the NNPC Ltd reported record profitability in its 2025 financial year despite a significant decline in revenue.





