Oil related firms to sell FX to CBN, not NNPC


Share post:

International and domestic oil companies, and those providing related services, are now to sell fx to the Central Bank of Nigeria instead of the NNPC. The aimed is to realign the fx policy with new reality as the corporation in charge of marketing the nation’s most valuable resource is no longer able to attract sufficient dollar to shore up the inflow of external reserve.

The consequences of Nigeria’s overt dependence on the oil market for fx receipts are noted in the present decline in the market. Oil receipts affect the depth of the external reserve which in turn impact the health of the Naira.

FBN highlighted the current situation. It said, “Nigeria’s over-dependence on the oil market for its fx receipts exposes its foreign exchange market to oil price volatility.”

It added, “Oil receipts (including oil related taxes) contribute to external reserves. The crude oil price averaged US$27/b in April, compared with US$35/b in March”.

To curb the slide, the Central Bank of Nigeria has since directed oil companies to desist from selling fx to the NNPC. These firms will now sell to the apex bank instead. This directive and several other measures put in place by the Federal Government and relevant agencies are structured to manage the foreign exchange.

The Naira is trading N389.53 to $1. The benchmark Brent crude also rose 4.17% to sell at $34.11 per barrel, a cause for respite for a nation ravaged by the twin-problem of economic lockdown and a glut in global oil output.


Toyin Afilaka
Toyin Afilaka
Toyin Afilaka writes with simplicity and insight. He aims to enrich the Nigerian small business landscape. Through Hustle24 he connects entrepreneurs with information about new policies, enterprise solutions and opportunities that will aid their 'hustle'. He has written extensively for CobraReview, a product review portal, and served as a lead project manager for MarketingMix where he consulted as PR consultant for MTN Project Fame and Business Next Titan etc.


Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Related articles

4 strategies from Bezos that would change your business

Success sometimes can grow to become a craft that leaves behind trails for others to follow. Jeff Bezos...

How to cultivate a purposeful culture

Sarah Turner, the founder and chief executive officer of an eponymous agency, provides interesting insights into how to...

20 Types Of Content To Help You Attract Prospects And Win Customers – Renae Gregoire

If you know deep inside that you need to be doing more to connect regularly with your audience...

High prospect for real estate investment in Nigeria – Bartholomew Egbochie, CEO, ATCO Homes

Lagos, Oct 4, 2023 - The Nigeria real estate sector provides ample investment opportunities. According Bartholomew Egbochie, the...