Manufacturers under the aegis of the Manufacturers Association of Nigeria Export Group (MANEG) have raised concerns over what they describe as a growing policy imbalance by the Central Bank of Nigeria (CBN), following its recent decision to allow International Oil Companies (IOCs) unrestricted access to repatriate 100 per cent of their export proceeds.
Last week, the apex bank scrapped the cash pooling requirement for IOCs’ foreign currency inflows, granting them the freedom to retain and repatriate all their export earnings through Authorised Dealer Banks (ADBs). The move has been widely interpreted as part of ongoing reforms to liberalise Nigeria’s foreign exchange regime and attract investment.
While stakeholders in the oil and gas value chain have largely welcomed the development, non-oil exporters warn that the policy risks reinforcing structural distortions in Nigeria’s export landscape.
In an exclusive interview with Vanguard, MANEG Executive Secretary, Dr. Benedict Obhiosa, acknowledged that the decision reflects a shift toward a more investor-friendly FX environment. “The policy is expected to attract increased investment into Nigeria’s oil sector and potentially other sectors,” he said. “However, it also raises concerns about foreign exchange liquidity, as more FX earnings could be repatriated offshore, limiting supply within the domestic market.”
Obhiosa further pointed to the exclusion of non-oil exporters from similar incentives, describing it as a significant policy gap. “This move highlights a clear imbalance. Non-oil exporters—critical to Nigeria’s diversification agenda—are not given comparable concessions. This could reinforce dependence on oil exports and weaken efforts to broaden the export base,” he added.
He urged policymakers to introduce complementary measures for non-oil exporters, emphasizing that balanced incentives are essential for sustainable and inclusive economic growth.
However, operators in the downstream oil and gas sector see the policy differently. Sales and Marketing Manager of LUBCON Group, Mashood Sanni, described the CBN decision as timely and beneficial for industrial operations. “This initiative will improve forex availability, which is crucial for indigenous lubricant manufacturers that rely on imported base oils and additives. It will ease procurement challenges, boost production capacity, and enhance competitiveness in both domestic and export markets,” he said.
Sanni added that the move is likely to encourage investment, support industrial growth, and promote sustainability within the indigenous lubricant manufacturing segment. “At a time when the Nigerian economy faces significant external pressures, this is a positive step that will enhance the capacity of local manufacturers and contribute to broader economic recovery,” he noted.
The contrasting perspectives highlight the ongoing debate over the balance between supporting oil sector growth and strengthening non-oil exports, a key pillar of Nigeria’s economic diversification strategy.