Connect with us

Economy

NACCIMA Laments CBN’s Refusal to Clear $2.4bn Invalid FX Forwards

Published

on

Dele Oye NACCIMA FX forwards

By Adedapo Adesanya

The Central Bank of Nigeria’s (CBN) refusal to pay $2.4 billion foreign exchange (FX) forwards declared illegal is affecting the operations of Nigerian businesses, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) says.

Recall that in February, the Governor of the CBN, Mr Yemi Cardoso, said that out of $7 billion in FX forwards claims, about $2.4 billion were illegitimate, so the CBN would not be clearing them after a recommendation from a Deloitte audit.

Now, NACCIMA National President, Mr Dele Oye, in a statement on Thursday expressed concerns that the failure to honour these FX forwards has saddled businesses and financial institutions with crippling interest rates, averaging over 35 per cent.

Mr Oye said the unpaid claims have further strained relationships with international trading partners and threaten the economy’s overall stability.

It was revealed that in 2022 and 2023, various Nigerian companies and small to medium-sized enterprises (SMEs) entered into FX forward contracts with the CBN.

The NACCIMA boss noted that the contracts involve exchanging a specific amount of foreign currency at a pre-agreed rate on a future date, but despite the maturity of these contracts, the CBN has yet to settle them.

Mr Oye stated that NACCIMA has actively sought a resolution by urging the CBN Governor to reassess the bank’s position.

He warned that if the issue is not solved amicably, forcing companies to settle at current exchange rates could trigger a further depreciation of the naira, as the market is ill-equipped to handle the resulting surge in demand for US dollars.

“The inability of companies to absorb the exchange rate differences and associated high-interest rates could lead to widespread bankruptcies, further destabilising the economy,” he said.

According to him, the affected companies could face an estimated loss of about N2.4 trillion, which would reduce corporate income tax revenues for the next two to three years, thus threatening federal government revenue.

Mr Oye said the CBN engaged the Economic and Financial Crimes Commission (EFCC) to investigate dubious transactions and prosecute those involved in fraudulent activities.

However, he argued that companies represented by NACCIMA, whose funds are tied up, expressed frustration with the prolonged investigation process, highlighting the severe financial strain and operational difficulties they face.

He said many of these businesses had used bank-confirmed lines to open Letters of Credit (LCs), paid import duties, and received goods, with their suppliers mostly settled by their banks’ correspondent banks. Despite CBN’s claim that the EFCC is investigating, these companies are suffering significant financial pressure from their banks and suppliers, he said.

The NACCIMA boss criticised the CBN’s approach, arguing that it lacked procedural fairness since the affected companies were not allowed to respond to the audit findings before the conclusions were made.

He accused the CBN of breaching contractual agreements by appointing Deloitte and making subsequent decisions without involving the companies, thus violating their right to a fair hearing.

“We have escalated the matter to the Hon. Minister of Finance, the Hon. Minister of Industry, Trade and Investment, and the House Committee on SME at the National Assembly, pointing out the unconstitutional nature of the CBN’s actions,” Mr Oye said.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Economy

Dangote Refinery Crude Intake Hits 635,000b/d in April, Receives 21 Cargoes

Published

on

Dangote Refinery Crude Supply to Local Refineries

By Adedapo Adesanya

Nigeria’s 650,000 barrels-per-day Dangote Refinery hit its highest-ever monthly crude intake in April 2026, taking in about 635,000 barrels per day of crude oil, according to Argus tracking data.

Deliveries in the review month rose from 565,000 barrels per day in March, bringing the refinery close to its full installed capacity.

The increase followed the completion of maintenance work on one of the refinery’s crude distillation units earlier this year.

This indicates that the Dangote Refinery is steadily ramping up operations toward full capacity after a gradual start since late 2023.

The refinery received 21 separate crude cargoes in April — a record since operations began.

All supplies came from West Africa, mainly Nigerian crude grades, with one cargo from Cameroon.

Nigerian grades delivered included Bonny Light, Escravos, Qua Iboe, Bonga, Forcados, Brass River, Amenam, and others.

Cameroon’s Ebome crude was supplied to the refinery for the first time.

April receipts comprised 160,000 barrels per day of Bonny Light, 65,000 barrels per day each of Escravos, Qua Iboe and Bonga, 50,000 barrels per day of CJ Blend, then 25,000-35,000 barrels per day each of Nigerian Utapate, EA, Jones Creek, Amenam, Forcados, Brass River, plus 25,000 barrels per day of Cameroon’s Ebome.

The strong rise in local and regional crude supply could also reduce the refinery’s dependence on imported crude grades and strengthen Nigeria’s domestic fuel production capacity.

The Argus report said that no US crude was delivered in April, despite the US West Texas Intermediate (WTI) crude previously being a major feedstock for the plant in 2025.

The refinery relied heavily on Suezmax tankers, with some vessels making multiple shuttle trips between offshore terminals and the refinery.

Average crude receipts in the first four months of 2026 climbed to 495,000 barrels per day, significantly above last year’s average of 375,000 barrels per day.

The data assessed Dangote’s April receipts at a weighted average of 35.1°API and 0.2 per cent sulphur content, compared with 37.2°API and 0.2 per cent sulphur in March. Receipts averaged 37.1°API and 0.15 per cent sulphur in January-April, compared with 36.8°API and 0.2 per cent sulphur across 2025.

The report also added receipts for May appear good as the refinery should get a cargo each of Qua Iboe and Odudu this week.

Continue Reading

Economy

Customs Area 11 Command Seizes N2bn Containers of Illicit Items

Published

on

Aliyu Mohammed Alkali Onne Port

By Bon Peters

About 17 containers containing illicit items worth over N2 billion have been seized by the Area 11 Command of the Nigeria Customs Service (NCS) in Onne, Port Harcourt, Rivers State, between January and April 2026.

In the period under review, the agency generated about N258 billion as revenue, a statement signed by the command’s acting spokesman, Mr Paul Istifanus Gimba, an Assistant Superintendent of Customs 1, disclosed on Thursday.

The Customs Area Controller for the Command, Comptroller Aliyu Mohammed Alkali, said last month, more than N77 billion was generated, noting that this reflects the command’s unwavering commitment to revenue generation, trade facilitation, and the enforcement of extant government fiscal policies.

He stated that in the second month of this month, his men intercepted an attempt to smuggle one 40-foot container declared to contain plumbing materials, with a Duty Paid Value (DPV) of N185.2 million.

According to him, upon examination, it was discovered that the perpetrators had concealed the original container number and replaced it with a fake one in an attempt to unlawfully remove the container from the port without payment of duty.

Furthermore, he hinted that in April 2026, the command intercepted six 20-foot containers carrying a total of 1,100 jerricans of Super Delicieux Vegetable Oil with a DPV of N494.0 million, in contravention of section 55 of the Nigeria Customs Service Act, 2023, which prohibited the importation of refined vegetable oils and fats in order to protect and promote local industries, particularly domestic vegetable oil producers and agro-allied businesses.

The senior customs officer highlighted other items seized by his men during the period under review, including cartons of chilli cutters, ceiling fans, and food packs.

The Comptroller reminded all mischievous importers and their agents that the command remained unwavering in its resolve to combat smuggling and all forms of illegal trade practices at the port, even as he strongly encouraged all law-abiding traders to remain compliant and resist the temptation to engage in activities that contravene the law.

Mr Alkali praised the professionalism of the officers and men of the command as well as their vigilance and dedication to duty.

He also thanked members of the press for their continued partnership and commitment to disseminating accurate and reliable information about the activities of the agency to the public.

Continue Reading

Economy

Indonesia Buys Nigerian Crude Oil to Reduce Exposure to Hormuz Disruptions

Published

on

crude oil in gongola

By Adedapo Adesanya

Indonesia has imported crude oil from Nigeria as Southeast Asia’s largest economy moves to reduce its dependence on Middle Eastern supplies amid rising geopolitical tensions involving the United States, Israel, and Iran.

Indonesia’s Ministry of Energy and Mineral Resources confirmed that Nigerian crude cargoes have already arrived in the country as part of efforts to diversify supply routes away from the volatile Strait of Hormuz, a key global oil transit chokepoint that handles about 20 per cent of world oil shipments.

The development positions Nigeria as an increasingly strategic alternative supplier in the global energy market as buyers seek more stable and flexible crude sources outside the Middle East.

Nigeria, which is Africa’s largest crude producer, has always sold some of its crude grades via joint ventures with international oil companies as well as to Dangote Refinery, to boost domestic production.

Indonesia’s Director General of Oil and Gas, Mr Laode Sulaeman, said the country was prioritising crude imports from suppliers whose shipping routes do not pass through the Strait of Hormuz, which has faced heightened security concerns following the ongoing conflict involving Iran, Israel, and the United States.

Apart from Nigeria, Indonesia is also considering crude supplies from Russia and the US.

The move could strengthen Nigeria’s crude export market at a time the country is seeking to boost production levels and attract new long-term buyers for its oil grades.

Speaking in March, the chief executive of the Nigerian National Petroleum Company (NNPC) Limited, Mr Bayo Ojulari, said that Nigeria could increase oil production by about 100,000 barrels per day ‌over the next few months to realistically help the global shortfall.

Before the latest geopolitical tensions, around 20 per cent of Indonesia’s crude imports came from the Middle East. However, the country has now accelerated plans to diversify supply sources, naming Nigeria among key replacement suppliers alongside Angola, Brazil, Russia, and the US.

The development comes as Nigeria continues to gain attention in global oil markets, with its crude grades increasingly sought after because of their relatively low sulphur content and suitability for modern refineries.

Indonesia also recently opened talks with Russia for long-term crude and liquefied petroleum gas supplies, including a proposed purchase of 150 million barrels of Russian crude scheduled for delivery from late 2026.

Continue Reading

Trending