…says the figure reflects the total foreign exchange transactions undertaken by participants in the NFEM
The Central Bank of Nigeria (CBN) has clarified its position on the $1.25 billion spent on oil sector imports in the first three months of this year, saying these are legitimate market transactions and not instances of direct CBN interference in the oil sector.
According to CBN spokesperson Hakama Sidi Ali, the figure reflects the total forex transactions undertaken by participants in the Nigerian Foreign Exchange Market (NFEM) in various sectors including oil and gas under the willing buyer, willing seller framework.
He explained that since the unification of exchange rates in 2023, the NFEM has been operating as a market-driven system, where foreign exchange is received and supplied by market participants, not allocated by the CBN.
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“The referenced figure of $1.259 billion published in the CBN’s Q1 2025 Sectoral Utilization of Foreign Exchange data does not represent CBN disbursements,” he said.
“The figure reflects the total foreign exchange transactions undertaken by participants in the Nigerian Foreign Exchange Market (NFEM) under the willing buyer, willing seller framework in various sectors including oil and gas.
“Since the unification of exchange rates in 2023, the NFEM has been operating as a market-driven system, where foreign exchange is received and supplied by market participants, not allocated by the CBN. Accordingly, the Bank has not sold foreign exchange specifically for the import of refined petroleum or any other product.”
He pointed out that the data cited in the report only reflects the total use by authorized dealers and end users who freely acquired foreign exchange through the market in full compliance with existing regulations. He stressed that these are legitimate market transactions, not examples of direct CBN interference in the oil sector.
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The spokesperson assured that the CBN is committed to a transparent, market-based foreign exchange system that promotes efficient price discovery, supports economic stability and ensures confidence in Nigeria's financial system.
