Abuja | October 27, 2025
The Central Bank of Nigeria (CBN) has released a total of $1.259 billion to major oil sector operators for the importation of petroleum products and other related items into the country, in a fresh effort to stabilize fuel supply and strengthen the naira.
The development, confirmed by The PUNCH and supported by data from the apex bank, comes amid heightened pressure in Nigeria’s foreign exchange market and concerns about persistent volatility in fuel distribution and pricing.
The CBN said the funds were allocated to ensure product availability, prevent potential shortages, and sustain liquidity within the downstream petroleum sector. The disbursement forms part of the bank’s ongoing intervention in critical sectors of the economy aimed at maintaining macroeconomic stability.
CBN’s Renewed Focus on Energy Sector Stability
According to reliable industry sources, the apex bank’s decision reflects its recognition of the oil and gas sector as the backbone of Nigeria’s economy. The move also aligns with its broader monetary policy objective of promoting economic growth through targeted forex support for strategic industries.
A senior CBN official, who spoke on condition of anonymity, explained that the $1.259 billion release was made to “support petroleum marketers, refiners, and other players who are legitimately importing fuel and related products.”
“The CBN remains committed to ensuring that essential sectors, particularly energy and manufacturing, have access to foreign exchange. This is crucial for sustaining national productivity and protecting consumers from fuel shortages or price shocks,” the official said.
The disbursement reportedly covers several categories of transactions including petrol, diesel, aviation fuel, and gas imports, alongside payments for critical logistics and infrastructure materials required by industry operators.
Forex Market Pressures and Economic Implications
The release comes at a time when the naira has faced renewed depreciation pressures against major currencies. The exchange rate has hovered between ₦1,550 and ₦1,650 per dollar in the official market, depending on daily liquidity levels.
Foreign exchange shortages have created difficulties for importers across sectors, leading to price adjustments and disruptions in supply chains. Analysts say the CBN’s intervention in the energy sector could help reduce pressure on the market by addressing one of the largest sources of forex demand—fuel importation.
Energy economist Dr. Bala Yunusa described the move as a “stabilizing measure” that demonstrates the apex bank’s understanding of current macroeconomic realities.
“The oil sector plays a pivotal role in Nigeria’s economy. Without forex access, marketers struggle to import products, which eventually leads to scarcity and inflation. The CBN’s decision is a proactive one that could help moderate these challenges,” Yunusa said.
Oil Imports and Dangote Refinery Factor
Despite the commissioning of the Dangote Petroleum Refinery, Nigeria still depends heavily on imported refined products. The 650,000-barrel-per-day facility, located in Lagos, has ramped up operations but is yet to meet the country’s entire domestic demand.
The refinery recently announced plans to double its capacity to 1.4 million barrels per day, a move expected to make Nigeria a net exporter of refined products in the medium term. Until that expansion fully materializes, forex support for fuel importers remains essential.
An industry source familiar with the matter noted that several importers have been struggling to obtain dollars from the official window.
“This CBN intervention will definitely ease the pressure on marketers. Many of them had been forced to buy from the parallel market, which worsened pump prices and created distortions,” the source said.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has in recent months warned against hoarding and price manipulation, assuring consumers that it would sustain strict market monitoring to prevent artificial scarcity.
CBN Governor Cardoso’s Economic Strategy
Since assuming office, CBN Governor Olayemi Cardoso has embarked on a series of monetary and forex policy reforms aimed at stabilizing the economy. These include the unification of exchange rates, clearance of forex backlogs owed to foreign investors and airlines, and the tightening of monetary policy to curb inflation.
Under his leadership, the apex bank has pledged to prioritize forex allocation to critical sectors including energy, manufacturing, agriculture, and health. The oil sector’s inclusion in this latest disbursement underscores the CBN’s focus on sectors that directly affect the cost of living and national productivity.
Cardoso has repeatedly stated that restoring investor confidence and improving transparency in forex transactions are top priorities for the bank.
“The CBN is focused on achieving stability in the foreign exchange market through discipline, transparency, and targeted interventions. Our approach is to support sectors that generate economic value and jobs for Nigerians,” Cardoso said at a recent monetary policy briefing in Abuja.
Reactions from Stakeholders
Reactions have continued to trail the announcement, with several stakeholders applauding the move as a positive step toward stabilizing the petroleum market.
The Major Oil Marketers Association of Nigeria (MOMAN) commended the CBN for recognizing the importance of forex access in maintaining smooth fuel supply across the country.
A MOMAN executive, speaking anonymously, said the intervention would help address payment bottlenecks that had delayed product imports.
“This is a welcome relief for the industry. The inability to access forex has been one of our biggest challenges. With this development, we can plan better and ensure that fuel supply remains consistent,” he said.
However, some analysts warn that such interventions must be accompanied by structural reforms in the downstream sector to achieve long-term stability.
Dr. Abiodun Ojo, a financial expert, noted that while the CBN’s disbursement provides short-term relief, Nigeria must focus on reducing its dependence on imported fuel through local refining and export diversification.
“Forex intervention can only go so far. The ultimate goal should be self-sufficiency in refining and energy production. Once the Dangote Refinery and other modular refineries reach full capacity, Nigeria could save billions of dollars annually,” Ojo stated.
Impact on Consumers and Fuel Prices
For consumers, the intervention is expected to translate into improved fuel availability and potentially more stable pump prices in the short term.
Petrol prices have fluctuated between ₦650 and ₦720 per litre in recent weeks, depending on region and supplier. Marketers have blamed the variation on forex costs, logistics, and regulatory adjustments.
By easing access to foreign exchange for importers, analysts say the CBN’s move could help prevent the kind of widespread fuel scarcity witnessed in the past, especially during the year-end period when demand spikes.
The NMDPRA has reassured Nigerians that there are sufficient fuel reserves across depots nationwide and that no immediate price hikes are expected.
Challenges Ahead
Despite the positive outlook, challenges persist. The sustainability of forex interventions depends heavily on Nigeria’s oil revenue performance, export diversification, and foreign investment inflows.
Experts also point to the need for tighter monitoring of forex utilization to prevent misuse. In previous interventions, some importers were accused of diverting allocated funds or failing to deliver products after accessing forex at preferential rates.
The CBN has promised stricter compliance checks and collaboration with relevant regulatory agencies to ensure accountability and transparency in forex allocations.
Conclusion
The Central Bank of Nigeria’s release of $1.259 billion to oil sector players marks another significant step in the ongoing effort to stabilize Nigeria’s economy and ensure uninterrupted petroleum supply.
While the move brings short-term relief to importers and consumers, it also underscores the country’s continuing reliance on imported fuel despite its vast crude oil reserves.
As the CBN maintains its monetary tightening policy and the Dangote Refinery prepares to expand output, experts say Nigeria’s long-term energy stability will depend on deep structural reforms, increased local production, and sustainable forex management.
