Business

Dollar Remittance: Presidency Wades Into CBN, NNPC ‘Feud’

Published

4 years ago

August 2, 2022

The presidency has waded into the controversy raging between the Central Bank of Nigeria (CBN) and the Nigeria National Petroleum Corporation Limited (NNPC) over the dwindling fortune of the naira, Daily Trust gathered from reliable sources yesterday.

The CBN on Friday blamed the non-remittance of dollars to foreign reserves by NNPC as the reason for the plunge of the naira in the official and parallel markets.

At the time of the allegation, the naira traded for N700/$1 at the parallel market and N415.96/$1 at the official market.

But in what could be seen as contradicting the CBN claim, a document from the NNPC on Sunday showed that the company remitted a total of $2.7bn into its accounts with the CBN from January to June this year.

Financial experts and some Nigerians were taken aback at the counterclaims by the federal government institutions with some of them describing the development as “an embarrassment” to the country.

‘Controversy being resolved’

Although the spokesman for the CBN, Mr Osita Nwanisobi, was not immediately available for comments, some top officials of the apex bank said the presidency had waded into the matter.

One of them said, “As we speak, there is a meeting over this issue at the presidency to resolve the anomaly because the report that they (NNPC) remitted $2.7bn to the federation is misconceived as money to the government.

“The fund they remitted is not oil imports,” he said.

READ ALSO:

According to him, “The money they remitted was not even up to the forex they require for the importation of white products and that was why they sought augmentation to meet the threshold.”

Another official said it was normal for the NNPC to have operational accounts with the CBN but that remittances into the FAAC were halted by NNPC Ltd for several months as it has been using the fund for the importation of petrol at a subsidised rate.

Daily Trust could not establish the identities of the people in the presidency discussing with leaders of the two establishments but it was learnt that “There was no big deal in the two versions of the story.”

A source said, “Both the CBN and the NNPC are meant to serve the public and we have a big problem at hand: the dwindling fortunes of the naira and the high cost of importing fuel for domestic consumption.

“While the CBN desperately needs the US dollar to stabilise the economy, the NNPC is equally battling hard to ensure that there is no relapse in fuel supply in the country. The two of them don’t want to be found wanting.

“But, of course, you know that failure has no father and this is basically why they are trying to shift the blame. Gladly, with the intervention of the presidency, the controversy will soon fizzle out,” he said.

Daily Trust found that so far, the NNPC had spent N1.1 trillion this year on petrol subsidy just as the government budgeted N4trn to cover petrol subsidy for the 2022 fiscal year ending May 2023.

Despite that, the agency had remitted some funds as explained by officials.

The remittance process

One of the CBN officials explained the remittance process that is generating controversy. The management official said: “What they (NNPC) sent so far in seven months this year is $1.6 million.

“CBN had to guarantee to give them additional funds so they can have enough forex for their imports.”

Further enquiries by this newspaper to top officials of CBN, NNPC Ltd and other agencies indicated that the remittance by the national oil company was funds meant for operations and not as accrued revenues to the government.

Before now, NNPC, a national oil corporation does business and remits oil sales proceeds to the Consolidated Revenue Fund (CRF), which is part of the funds shared monthly by the Federation Accounts Allocation Committee (FAAC) to the federal, state and local governments.

However, since January, there has been no known contribution from the NNPC Ltd to the FAAC funds according to the monthly FAAC data report and official pronouncements.

How the controversy started

The CBN Governor, Godwin Emefiele was summoned by the Senate last week over the rate at which the naira was crashing. This followed the adoption of a motion by Senator Olubunmi Adetunmbi (APC, Ekiti North).

Contributing to the debate, Senator Sani Musa (Niger East), said the naira would appreciate if Nigerians consume what they produce.

Senator Biodun Olujimi (Ekiti South) said, “The time has come for us to look holistically into what is happening. What is happening to the dollar is a replica of what is happening to Nigeria,” she said.

The Senate thereafter asked the CBN to stop the rapid decline of the value of the naira.

READ ALSO:

It was after the resolution of the Senate that the CBN governor brought in the NNPC angle to the matter.

While the CBN said there had been a “zero-dollar” remittance to the country’s foreign reserve by the NNPC Ltd, the report attributed to the NNPC payment document at the weekend stated that the corporation had remitted $2.7 billion into its accounts with the CBN from January to June this year, which could strengthen the naira.

According to the document, $645 million was for dividends paid by the Nigerian Liquefied Natural Gas Company Ltd, while $1.786bn was from the NNPC operational activities.

A breakdown of the NNPC remittances showed that funds into the NNPC accounts included; $18,770,418.97 paid into its account with CBN in January; $194,563,276.49 paid in February and $373,232,875.20 paid in March 2022. In April, NNPC Ltd paid $247,884,295.52; paid $591,565,425.41 in May and $880,906,761.81 in June.

When contacted to explain what is happening, the Group General Manager, Group Public Affairs Division at NNPC Ltd, Garbadeen Mohammed, confirmed the payment to this paper but stated that he does not know the exact amount and also said the payment was made to the NNPC account with the CBN.

This indicates that the payment was not a cash inflow to the federal account or to FAAC which is shared by the three tiers of government.

“I cannot confirm the exact figure but it is true that NNPC Ltd has remitted over two billion dollars into NNPC’s accounts with the CBN in the last six months,” he said.

Data from FAAC showed that NNPC ought to remit N122.7bn every month to FAAC this year from its trade and so far, it has not remitted for six months.

During a side-line interview a fortnight ago at the unveiling of the commercialised NNPC Ltd by President Muhammadu Buhari, the Group CEO of NNPC Ltd, Mele Kyari, said: “We are now a private company. Will MTN go to FAAC? We will pay our taxes; we will pay our royalties and we will deliver dividends to our shareholders.”

On the arrears before the July 19 transition, the GCEO said, “Which arrears? That was the Nigerian National Petroleum Corporation.”

Finance minister mum

When contacted for clarification on the $2.7bn NNPC payments by NNPC and why it did not reflect in the June FAAC report, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, did not respond to a text message sent to her mobile line and WhatsApp.

However, at the public consultation on the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) in Abuja recently, she explained why the NNPC stopped remittances to FAAC.

She had said, “The new arrangement (is that) NNPC will not be contributing to FAAC on a monthly basis, but NNPC will still be paying taxes, royalties and dividends.

“But let me also say that prior to the NNPC transiting, for about eight months we have not been receiving any revenues. Why are we not receiving any revenues from the NNPC? (It is) because the NNPC has been instructed to cover the cost of fuel subsidy on behalf of the federation.”

Up Next

We didn’t increase petrol price, marketers did –FG

Don't Miss

Siemens transformers pass Italy test, coming to Nigeria September

Business

BREAKING: OPay Warns Customers Against Viral Shutdown Message, Threatens Legal Action

Published

43 minutes ago

September 5, 2026

Trends Admin

BREAKING: OPay Warns Customers Against Viral Shutdown Message, Threatens Legal Action

OPay, one of Nigeria’s leading digital financial services platforms, has dismissed reports circulating on social media claiming that the company is shutting down its operations or proceeding on an indefinite leave.

The company, in an official statement, described the messages as false and misleading, urging its customers and members of the public to disregard the reports and refrain from sharing unverified information.

The clarification comes amid messages being circulated across social media platforms allegedly advising OPay customers to withdraw their funds because the fintech company was purportedly preparing to shut down.

However, OPay said there was no basis for the claims, stressing that its operations remained fully functional and that customers could continue to use their accounts as usual.

“OPay remains fully operational, and your money is safe and secure,” the company stated, adding that its services were continuing to run normally.

The digital banking platform assured customers that they could continue using their OPay accounts “with confidence,” apparently seeking to calm concerns that may have arisen from the viral messages.

OPay further pointed to its regulatory status in Nigeria, stating that it is duly licensed by the Central Bank of Nigeria (CBN) and its deposits are insured by the Nigeria Deposit Insurance Corporation (NDIC).

The company said its regulatory and insurance status underscored its commitment to providing safe, reliable and convenient financial services to Nigerians.

READ ALSO:

The fintech firm also revealed that the authorities had taken the circulation of the alleged false information seriously.

According to OPay, the Central Bank of Nigeria, in conjunction with security and law-enforcement agencies, is investigating the individuals responsible for creating and spreading the messages.

The company warned that those found culpable would face legal consequences.

“We take this matter seriously,” OPay said, adding that violators would be prosecuted “to the full extent of the law.”

The company also appealed to its customers to exercise caution when receiving information about its operations, particularly messages circulated through social media and other unofficial channels.

OPay urged users not to believe or share unverified claims, advising them to rely on the company’s official communication channels for accurate information concerning its services.

Reaffirming its commitment to the Nigerian market, the company said: “OPay is committed to Nigeria and Nigerians. We are here, and we are not going anywhere.”

The statement ended with an appreciation to customers for their continued confidence in the digital banking platform.

The development comes against the backdrop of the growing influence of digital financial platforms in Nigeria, where millions of customers use fintech applications for money transfers, payments, savings and other financial transactions. Consequently, unverified reports concerning the stability of a major digital banking platform can generate considerable anxiety among users.

OPay’s clarification therefore appears aimed at preventing panic withdrawals and reassuring customers that its services remain available.

BREAKING: OPay Warns Customers Against Viral Shutdown Message, Threatens Legal Action

Business

Dangote Refinery IPO approved at ₦525 per share, targets ₦2.15trn

Published

19 hours ago

September 4, 2026

Trends Admin

Dangote Refinery IPO approved at ₦525 per share, targets ₦2.15trn

The Securities and Exchange Commission (SEC) has approved the commencement of the Dangote Refinery initial public offering (IPO), clearing the way for the highly anticipated public sale of shares in one of Africa’s largest industrial projects.

Under the approved offer, Dangote Petroleum Refinery and Petrochemicals FZE will offer 4.1 billion ordinary shares at ₦525 per share, with the transaction capable of raising approximately ₦2.15 trillion if fully subscribed.

The development represents a major milestone for the Dangote Refinery IPO and could make the transaction one of the largest public offerings ever undertaken in Nigeria and potentially one of the biggest in Africa.

The SEC conveyed its approval in a letter to Vetiva Advisory Services Limited, the Lead Issuing House for the transaction. The letter was signed by Abdulkadir Abbas, Director of the SEC’s Securities and Investment Services Department.

The regulator also registered the company’s existing 120.13 billion ordinary shares, while approving the refinery’s draft offer documents and authorising it to proceed with the Completion Board Meeting and Signing Ceremony.

The approval brings the refinery significantly closer to its planned entry into the Nigerian capital market, where investors will have an opportunity to acquire a direct stake in one of the country’s most strategically important energy assets.

The Dangote Refinery shares are expected to be offered to a broad range of investors, with the order book scheduled to open on September 14, 2026, according to the latest details surrounding the transaction.

The proposed offer involves 4.1 billion shares priced at ₦525 each, translating to a potential gross fundraising of about ₦2.15 trillion, or roughly $1.5 billion at prevailing exchange rates.

The transaction is also expected to include a 15 per cent greenshoe option, which would give the company the flexibility to sell additional shares if demand exceeds the initial offer.

READ ALSO:

The proceeds are expected to support Dangote Group’s ambitious plans to expand the refinery’s capacity from its current 650,000 barrels per day nameplate capacity to approximately 1.4 million barrels per day.

The refinery reached its 650,000-barrel-per-day nameplate capacity earlier in 2026 and has subsequently tested production of up to 700,000 barrels per day.

If the planned expansion to 1.4 million barrels per day is completed, the facility would become the world’s largest refinery, surpassing existing mega-refineries in other parts of the world.

The expansion is expected to strengthen Nigeria’s position in the global refined petroleum products market while further increasing the country’s ability to process crude oil domestically.

Located in Ibeju-Lekki, Lagos State, the Dangote Petroleum Refinery and Petrochemicals Complex occupies approximately 2,635 hectares and forms part of one of Africa’s largest integrated industrial developments.

The complex combines crude oil refining, petrochemical production, power generation, storage and marine logistics infrastructure.

It includes a 900,000-tonnes-per-annum polypropylene plant and a dedicated 435-megawatt power plant, giving the facility substantial internal energy-generation capacity.

The refinery also has extensive storage infrastructure comprising 177 tanks with a combined capacity of approximately 4.742 billion litres.

Its marine facilities include multiple quays capable of handling large vessels, liquid cargo shipments and roll-on/roll-off operations, while its crude and product-handling infrastructure is designed to support large-scale domestic distribution and exports.

The complex also has five Single Point Moorings (SPMs) designed to facilitate the efficient loading and unloading of crude oil and petroleum products.

The scale of the facility has enabled Dangote Refinery to increasingly serve both the Nigerian market and international destinations as production expands.

Since commencing operations, the refinery has become an increasingly important supplier of refined petroleum products in Nigeria, while also developing an export business serving markets across Africa and Europe.

READ ALSO:

Growing exports of refined petroleum products have further strengthened the refinery’s strategic importance, particularly as Nigeria seeks to reduce its historic dependence on imported petroleum products.

The Dangote Refinery IPO is therefore being launched at a significant stage in the company’s development.

The refinery has already undergone major capital investment and is now seeking additional funding to increase its processing capacity and strengthen its position as a major regional energy hub.

Ahead of the IPO, the refinery also completed a major private fundraising exercise and secured additional financial backing to strengthen its position ahead of the public offering.

The proposed listing will also broaden investor participation in the refinery. Until now, ownership of the facility has largely remained within the Dangote Group and associated investors, meaning ordinary investors have had limited opportunities to directly participate in its growth.

The planned NGX listing could change that by opening the refinery’s ownership to a much wider pool of Nigerian and international investors.

Aliko Dangote has previously described the planned listing as an opportunity to broaden participation in the company and allow more Africans to benefit from the growth of one of the continent’s largest industrial investments.

The transaction could also have a significant impact on Nigeria’s capital market because of its sheer size.

A successful ₦2.15 trillion IPO would represent a substantial injection of new capital and could increase the depth, liquidity and attractiveness of the Nigerian equities market.

The listing is also expected to attract considerable attention from institutional investors, pension funds, asset managers, high-net-worth individuals and retail investors seeking exposure to the energy and industrial sectors.

For investors considering the Dangote Refinery shares, however, the ₦525 offer price will be only one part of the investment decision.

Prospective investors will need to examine the company’s final offer documents, financial performance, profitability, debt position, expansion requirements, dividend policy and exposure to changes in crude oil prices, petroleum product prices, exchange rates and global refining margins.

The ability of the refinery to maintain high utilisation rates and generate sufficient cash flow while simultaneously funding its planned expansion will also be closely watched by investors.

The company’s ability to expand its export markets could become increasingly important as its production capacity grows beyond Nigeria’s domestic requirements.

With the proposed expansion to 1.4 million barrels per day, Dangote Refinery is seeking to move beyond its role as Nigeria’s largest refinery and establish itself as a major global refining and petrochemical hub.

The ₦525 per share Dangote Refinery IPO consequently represents more than another stock market transaction. It could mark a new phase in the development of Nigeria’s downstream petroleum sector while giving investors direct access to one of the country’s most ambitious industrial projects.

As the expected September 14 opening approaches, market attention will increasingly focus on investor demand, the final terms of the offering and whether the refinery succeeds in raising the targeted ₦2.15 trillion.

If successfully completed, the IPO would give the Dangote Refinery a new ownership structure, provide additional capital for expansion and potentially establish one of the most significant new listings in the history of Nigeria’s capital market.

Dangote Refinery IPO approved at ₦525 per share, targets ₦2.15trn

Auto

Jetour G700 PHEV Lands in Abuja for 3-Day Luxury Mobility Showcase

Published

1 day ago

September 4, 2026

Trends Admin

Jetour G700 PHEV Lands in Abuja for 3-Day Luxury Mobility Showcase

Jetour Nigeria is taking its premium mobility campaign to the Federal Capital Territory, with the flagship G700 Plug-in Hybrid Electric Vehicle (PHEV) set to headline a three-day luxury automotive showcase in Abuja from September 22 to 24, 2026.

The Abuja experience, coming on the heels of the brand’s major showcase in Lagos, is part of Jetour Nigeria’s aggressive drive to deepen its presence in the country’s premium automotive market while introducing consumers to a new generation of electrified mobility.

The G700 PHEV, positioned as Jetour’s flagship luxury SUV, combines executive-class comfort with advanced hybrid technology and serious off-road capability.

The model’s arrival in Abuja also comes at a time the brand is gaining increasing recognition in Nigeria’s automotive industry. Jetour Nigeria was recently honoured by the Nigeria Auto Journalists Association (NAJA) as the Fastest Growing Auto Brand of the Year, underscoring its expanding market presence.

At the heart of the G700 is Jetour’s Kunpeng Super Hybrid system, paired with dual electric motors. The powertrain delivers a claimed combined driving range of up to 1,400 kilometres, offering a response to one of the major concerns surrounding electrified vehicles—range anxiety.

The flagship SUV also comes equipped with adaptive suspension, triple differential locks and up to 970mm wading capability, giving it the muscle to handle demanding terrain while retaining the refinement expected of a luxury vehicle.

Inside, the six-seat G700 delivers a premium cabin experience, featuring Nappa leather upholstery, massage seats, a 35.4-inch 3K panoramic display, an 18-speaker Lexicon sound system and an onboard refrigerator.

READ ALSO:

The Abuja showcase is expected to attract government officials, corporate executives, fleet managers, motoring enthusiasts and members of the media. Participants will have the opportunity to experience the G700 through an exclusive vehicle reveal, hands-on demonstrations and VIP test drives.

Jetour Nigeria promises ownership support

Beyond the vehicle itself, Jetour Nigeria is highlighting its after-sales support as a key component of the ownership proposition.

Customers purchasing through its authorised network will benefit from a five-year or 150,000-kilometre manufacturer warranty, access to genuine spare parts, software upgrades and certified technical support.

The company currently operates through seven accredited dealerships, including Elizade Nigeria Limited, New Era AutoVehicle Services, Kojo Motors, Germaine Auto Centre, Tab Autos, R.T. Briscoe Motors and Mandilas Motors.

Jetour Nigeria is inviting prospective customers and automotive stakeholders to register for the Abuja experience and secure VIP test-drive slots.

Registration, vehicle specifications and event updates are available through www.jetournigeria.com, Instagram @jetour_nigeria and @Jetourngofficial, or via info@jetournigeria.com.