CBN denies allocating $1.25bn for petrol importation

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The Central Bank of Nigeria (CBN) has denied disbursing $1.25 billion to major oil sector operators for the importation of refined petroleum products and related items.

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On Monday, reports circulated that CBN disbursed $1.25 billion for oil and gas imports in the first quarter (Q1) of 2025.

In a statement on Tuesday, CBN described the reports as “entirely inaccurate and misleading”.

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The apex bank explained that the figure of $1.25 billion, cited in its Q1 2025 Sectoral Utilisation of Foreign Exchange report, does not represent direct disbursements from the CBN.

According to the apex bank, the figure reflects the total value of foreign exchange (FX) transactions conducted by participants in the Nigerian Foreign Exchange Market (NFEM) under the willing buyer, willing seller framework.

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Hakama Sidi-Ali, CBN’s spokesperson, clarified that the bank no longer allocates foreign exchange since the unification of exchange rates in 2023.

“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,” she said.

“Accordingly, the Bank has not sold foreign exchange specifically for the importation of refined petroleum nor any other products.”

She further explained that the data cited in the report represents aggregate utilisation by authorised dealers and end-users who sourced foreign exchange independently through the market in compliance with existing regulations.

Sidi-Ali emphasised that the transactions were legitimate market activities, not direct CBN interventions in the oil sector.

The spokesperson assured that the CBN remains committed to maintaining a transparent and market-based foreign exchange system that supports efficient price discovery, economic stability, and confidence in Nigeria’s financial system.

 

 

 

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