- FEC orders full implementation of naira-for-crude agreement
The Central Bank of Nigeria has said that personal remittance inflows rose to $20.93bn in 2024, reflecting an 8.9 per cent increase year-on-year.
This was contained in a statement issued on Wednesday by the apex bank while announcing a balance of payments surplus of $6.83bn for the 2024 financial year.
The statement was signed by the CBN’s Acting Director, Corporate Communications, Mrs. Hakama Sidi-Ali.
The figure marks a significant turnaround from deficits of $3.34bn and $3.32bn recorded in 2023 and 2022, respectively.
The CBN said the improvement was due to a mix of macroeconomic reforms, stronger trade performance, and renewed investor confidence.
According to the statement, remittance inflows remained resilient throughout the year, with inflows through International Money Transfer Operators increasing by 43.5 per cent to $4.73bn, up from $3.30bn in the previous year.
The statement read, “Remittance inflows remained resilient, with personal remittances rising by 8.9 per cent to $20.93bn.
“International Money Transfer Operator inflows surged by 43.5 per cent to $4.73bn, up from $3.30bn in 2023, reflecting stronger engagement from the Nigerian diaspora. Official development assistance also rose by 6.2 per cent to $3.37bn.”
The current and capital account recorded a surplus of $17.22bn, underpinned by a goods trade surplus of $13.17bn.
Non-oil exports rose by 24.6 per cent to $7.46bn, while gas exports increased by 48.3 per cent to $8.66bn.
Meanwhile, petroleum imports fell by 23.2 per cent to $14.06bn, and non-oil imports declined by 12.6 per cent to $25.74bn.
On the financial account side, Nigeria posted a net acquisition of financial assets amounting to $12.12bn.
Portfolio investment inflows more than doubled, rising by 106.5 per cent to $13.35bn, while resident foreign currency holdings grew by $5.41bn.
However, foreign direct investment dropped by 42.3 per cent to $1.08bn.
The country’s external reserves also grew by $6bn to $40.19bn by the end of 2024, strengthening the country’s foreign exchange buffer.
In terms of data quality, the CBN reported a marked improvement in reporting accuracy. Net errors and omissions declined by 79.5 per cent to negative $5.10bn in 2024, down from $24.90bn in 2023, which the bank attributed to improved data capture and transparency.
Reacting to the figures, the Governor of the CBN was quoted as saying, “The positive turnaround in our external finances is evidence of effective policy implementation and our unwavering commitment to macroeconomic stability. This surplus marks an important step forward for Nigeria’s economy, benefiting investors, businesses, and everyday Nigerians alike.”
The bank further attributed the improved external position to policy reforms, including the liberalisation and unification of the foreign exchange market, a disciplined monetary policy stance, and coordinated fiscal and monetary interventions.
FEC orders full implementation of naira-for-crude deal
Also, the Federal Executive Council has officially directed the full implementation of the suspended Naira-for-Crude agreement with local refiners.
The Ministry of Finance disclosed this on its official X handle titled “Update on the Crude and Refined Product Sales in Naira Initiative,” on Wednesday.
Recall that the first phase of the six-month deal involving the Federal Government, Nigerian National Petroleum Company Limited, and Dangote Petroleum Refinery ended March 31, 2025.
It has not been renewed and the Dangote refinery has since stopped selling refined petroleum products in naira due to the non-renewal of the naira-for-crude deal.
In a new update on Wednesday, the committee said the policy is not temporary but a long-term plan to cut Nigeria’s dependence on foreign exchange for petroleum.
This came after a key meeting on Tuesday to review progress and tackle ongoing issues.
It added that the initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, and bolster energy security.
The statement read, “The Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative convened an update meeting on Tuesday to review progress and address ongoing implementation matters.
“The stakeholders reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.
“Thus, the Crude and Refined Product Sales in Naira initiative is not a temporary or time-bound intervention, but a key policy directive designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.”
The policy, which mandates the transaction of crude oil and refined petroleum products in Naira, is aimed at strengthening the country’s economic sovereignty, enhancing local refining capacity, and stabilising the foreign exchange market by reducing the demand for dollars in domestic petroleum transactions.
The ministry explained that this policy is structured to foster energy security and encourage investment in domestic refining infrastructure.
While acknowledging that the transition involves complexities, the government admitted that existing challenges are being systematically addressed.
“As with any major policy shift, the Committee acknowledges that implementation challenges may arise from time to time.
“However, such issues are being actively addressed through coordinated efforts among all parties. The initiative remains in effect and will continue for as long as it aligns with the public interest and supports national economic objectives,” it noted.
The statement added that the meeting was attended by the Chairman of the Implementation Committee, Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Chairman of the Technical Sub-Committee and Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji; the Chief Financial Officer of NNPC Limited, Dapo Segun; the Coordinator of NNPC Refineries; Management of NNPC Trading.
Also present were representatives from Dangote Petroleum Refinery and Petrochemicals, the Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Ports Authority, Afreximbank, and the Secretary of the Committee, Hauwa Ibrahim.
