The Central Bank of Nigeria (CBN) has denied reports that it allocated $1.259 billion to major oil sector operators for the importation of refined petroleum products and related items. According to the CBN, the figure in question, which was published in its Q1 2025 Sectoral Utilisation of Foreign Exchange data, represents total foreign exchange transactions conducted by participants in the Nigerian Foreign Exchange Market (NFEM) across various sectors, including oil and gas.
The CBN’s spokesperson, Mrs. Hakama Sidi Ali, clarified that the figure does not represent direct disbursements by the bank. Since the unification of exchange rates in 2023, the NFEM has operated as a market-driven system, where foreign exchange is sourced and supplied by market participants, not allocated by the CBN. The bank has not sold foreign exchange specifically for the importation of refined petroleum or any other products.
The data in question captures aggregate utilisation by authorised dealers and end-users who independently sourced foreign exchange through the market, in full compliance with existing regulations. This signifies legitimate market transactions, not instances of direct CBN intervention in the oil sector. The CBN remains committed to a transparent, market-based foreign exchange regime that promotes efficient price discovery, supports economic stability, and fosters confidence.
The CBN’s denial comes as the country continues to navigate its foreign exchange management. The bank’s commitment to a market-driven system is aimed at promoting economic stability and confidence. The clarification is significant, as it reinforces the CBN’s position on its role in the foreign exchange market. The bank’s actions and policies have a direct impact on the country’s economy, and its commitment to transparency and accountability is essential for maintaining trust and confidence in the financial system.
The Nigerian economy has been working to recover from the impact of the COVID-19 pandemic and other global economic challenges. The CBN’s foreign exchange management policies have been crucial in this effort, and the bank’s denial of the reports highlights its commitment to transparency and accountability. As the country continues to navigate its economic challenges, the CBN’s role in managing the foreign exchange market will remain critical. The bank’s actions and policies will be closely watched, and its commitment to transparency and accountability will be essential for maintaining trust and confidence in the financial system.