CBN Dismisses Reports Of $1.25 Billion Disbursement To Oil Firms, Says Claim ‘Misleading’

The Central Bank of Nigeria (CBN) has debunked reports claiming it disbursed $1.25 billion to major oil and gas operators for the importation of refined petroleum products and related commodities in the first quarter of 2025.

The reports, which surfaced on Monday, October 27, alleged that the apex bank directly released the funds to oil sector players. However, in a statement issued on Tuesday, October 28, the CBN described the claims as “entirely inaccurate and misleading.”

According to the bank, the $1.25 billion figure cited in its Q1 2025 Sectoral Utilisation of Foreign Exchange Report does not represent direct disbursements from the CBN. Instead, it reflects the total value of foreign exchange transactions conducted by participants in the Nigerian Foreign Exchange Market (NFEM) under the willing buyer, willing seller framework.

CBN spokesperson Hakama Sidi-Ali clarified that the apex bank no longer allocates foreign exchange directly to any sector 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,” Sidi-Ali stated.

“Accordingly, the Bank has not sold foreign exchange specifically for the importation of refined petroleum or any other products.”

She explained that the figures cited in the report represent aggregate FX utilisation by authorised dealers and end-users who sourced their foreign exchange independently through market operations in line with existing regulations.

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

Reaffirming the bank’s commitment to transparency, she said the CBN remains focused on sustaining a market-based foreign exchange framework that supports price discovery, economic stability, and public confidence in Nigeria’s financial system.