CBN denies its participation in the usage of foreign exchange in the oil sector

 

Reports that the Central Bank of Nigeria, or CBN, gave US$1.259 billion to significant players in the oil industry to purchase refined petroleum products and associated goods have been denied.

The apex bank described the reports as completely false and deceptive, pointing out that the US$1.259 billion mentioned in the CBN's Q1 2025 Sectoral Utilization of Foreign Exchange data does not correspond to CBN disbursements.

The statistic solely represents the total foreign exchange transactions made by participants in the Nigerian Foreign Exchange Market, or NFEM, across a variety of industries, including oil and gas, under the willing buyer, willing seller framework, according to a statement made by the bank's spokesperson, Mrs. Hakama Sidi Ali.

"The NFEM has functioned as a market-driven system since the unification of exchange rates in 2023, where foreign exchange is sourced and supplied by market participants, not allocated by the CBN," Sidi Ali said.

The bank hasn't sold foreign exchange for the importation of refined petroleum or any other goods, she clarified.

In complete accordance with current regulations, she clarified, "the data cited in the report simply captures aggregate usage by authorized dealers and end-users who independently sourced foreign exchange through the market."

Assuring that the CBN is still dedicated to an open, market-based foreign exchange regime that facilitates effective price discovery, upholds economic stability, and builds confidence, she emphasized that the data represents genuine market transactions rather than direct CBN intervention in the oil industry.