CBN Clarifies $1.25bn Q1 Oil Sector FX Transactions, Says No Direct Intervention
The Central Bank of Nigeria (CBN) has clarified that the reported $1.25 billion spent on oil sector imports in the first quarter of 2025 does not represent any form of direct intervention by the apex bank. Instead, the amount reflects legitimate foreign exchange transactions conducted by market participants under the willing buyer, willing seller framework in the Nigerian Foreign Exchange Market (NFEM).
CBN spokesperson Hakama Sidi Ali explained that the figure captures the total foreign exchange utilisation by authorised dealers and end-users across multiple sectors, including oil and gas. She stressed that the transactions were conducted within the NFEM — a system that has operated on a market-driven basis since the unification of exchange rates in 2023.
According to the CBN, the NFEM allows participants to source and supply foreign exchange independently, ensuring that rates are determined through open market dynamics rather than central bank allocations. Sidi Ali emphasized that the Bank has not sold foreign exchange directly for the importation of refined petroleum or any other products, reaffirming the regulator’s commitment to transparency in FX management.
She further noted that the data published in the CBN’s Q1 2025 Sectoral Utilisation of Foreign Exchange report simply aggregates the total value of market transactions, rather than funds disbursed by the Bank. “These are legitimate market activities, not direct CBN interventions,” she reiterated, underscoring that all transactions were carried out in full compliance with existing foreign exchange regulations.
The spokesperson reaffirmed the CBN’s dedication to maintaining a transparent and efficient foreign exchange regime that promotes economic stability and strengthens confidence in Nigeria’s financial system. She added that the Bank remains focused on ensuring effective price discovery and sustaining investor trust as part of its broader strategy to stabilize the economy.
source: business day