THE Central Bank of Nigeria (CBN) has denied reports suggesting it disbursed $1.259 billion directly to companies in the oil sector, describing the claims as both false and misleading.
In a statement released yesterday by CBN spokesperson Hakama Ali, the apex bank clarified that the figure referenced in its Q1 2025 Sectoral Utilisation of Foreign Exchange Report reflected market-driven transactions by participants in the Nigerian Foreign Exchange Market (NFEM)—not direct allocations from the bank.
“The Central Bank of Nigeria has noted some misreporting that falsely implies the Bank disbursed US$1.259 billion to major oil sector operators for the importation of refined petroleum products and related items. Such reporting is entirely inaccurate,” the statement read.
The bank explained that the amount cited represents the total value of foreign exchange transactions carried out by authorized dealers and end-users under the willing buyer, willing seller model.
According to the CBN, since the unification of exchange rates in 2023, the NFEM has operated as a market-driven platform, where foreign currency is sourced and supplied by market participants rather than allocated by the central 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. Accordingly, the bank has not sold foreign exchange specifically for the importation of refined petroleum nor any other products,” Ali stated.
The apex bank emphasized that the transactions in question were legitimate market exchanges, conducted independently by dealers and end-users within existing regulatory frameworks — not direct interventions by the CBN in the oil sector.
Reaffirming its commitment to transparency, the CBN said it remains focused on maintaining a market-based foreign exchange system that promotes efficient price discovery, economic stability, and investor confidence in Nigeria’s financial markets.