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.

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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.

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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.”

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MTN Nigeria Suspends Airtime Loan Service

Published

2 days ago

April 17, 2026

Trends Admin

MTN Nigeria Suspends Airtime Loan Service

MTN Nigeria Communications PLC has temporarily suspended its airtime and data credit service, Xtratime, following new regulatory requirements governing digital consumer lending services in Nigeria.

The company disclosed the development in a corporate filing to the Nigerian Exchange Limited (NGX) on Thursday, stating that the suspension was necessary to comply with the 2025 Digital, Electronic, Online and Non-Traditional Consumer Lending Regulations issued by the Federal Competition and Consumer Protection Commission (FCCPC).

According to MTN, the Xtratime service—which allows prepaid subscribers to borrow airtime or data and repay on their next recharge—falls under the expanded scope of the new regulatory framework and now requires additional compliance and licensing processes before it can resume.

In the regulatory notice signed by Company Secretary Uto Ukpanah, MTN said:
“MTN Nigeria Communications PLC hereby notifies the Nigerian Exchange Limited and the investing public that the company has temporarily suspended its airtime and data credit advance service (‘Xtratime’).”

The telecom operator added that the suspension is tied to ongoing implementation of the FCCPC’s updated rules, which introduce stricter compliance, registration, and licensing obligations for all providers of digital or non-traditional credit services.

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MTN stressed that despite the suspension, customers can still purchase airtime and data through other available channels, including banking platforms, USSD services, and mobile apps, assuring that the decision is not expected to significantly affect earnings.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said, adding that updates would be provided in its Q1 2026 financial report.

The development highlights the widening reach of Nigeria’s consumer credit regulations, which now extend beyond banks and fintech loan apps to include telecommunications companies offering airtime advances.

The FCCPC had earlier introduced a framework for digital lending in 2022 but strengthened enforcement with the 2025 regulations, requiring all operators in the sector to register and obtain approval before continuing operations.

Under the new rules, companies offering short-term digital credit services must meet stricter standards on consumer protection, transparency, data governance, and ethical debt recovery practices. The commission has reportedly set an April 2026 deadline for full compliance by existing operators.

Industry analysts say the move reflects a broader effort by regulators to bring order to Nigeria’s fast-growing digital credit ecosystem, where airtime loans have become a key financial support tool for millions of low-income mobile users.

For now, MTN has not announced a timeline for restoring the Xtratime service, stating only that it will resume once full regulatory compliance is achieved.

MTN Nigeria Suspends Airtime Loan Service

Business

Dangote Named Only Nigerian on TIME100 2026 Global Influence Ranking

Published

3 days ago

April 16, 2026

Trends Admin

Africa’s richest businessman, Aliko Dangote

Alhaji Aliko Dangote, the CEO of Dangote Group

Dangote Named Only Nigerian on TIME100 2026 Global Influence Ranking

Nigerian business magnate Aliko Dangote has been named among the TIME100 Most Influential People in the World for 2026, as TIME Magazine released its latest list recognising individuals shaping global politics, business, technology, and culture.

Dangote, Africa’s richest man and founder of the Dangote Group, is the only Nigerian featured in the 2026 edition. He appears in the Titans category, recognised for his decades-long push to industrialise Africa through investments in cement, sugar, fertiliser, and the landmark Dangote Refinery—one of the largest single-train refineries in the world.

This marks Dangote’s second appearance on the TIME100 list, following his first inclusion in 2014, further cementing his status as one of Africa’s most globally recognised industrialists.

A key highlight of this year’s recognition is the tribute written by fellow Nigerian billionaire Tony Elumelu, who praised Dangote’s entrepreneurial journey and continental impact. Elumelu described him as “indefatigable, resilient, and foresighted,” and lauded him as “one of the greatest African entrepreneurs of our time.”

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He added that Dangote’s work demonstrates that Africans can create large-scale value “with our own resources, on our continent,” reinforcing the philosophy of economic self-reliance that has shaped both businessmen’s careers.

Interestingly, the gesture reflects a role reversal from previous years, as Dangote once wrote Elumelu’s TIME100 tribute when the UBA chairman appeared on the list in 2020.

The 2026 TIME100 list, now in its 23rd edition, features global figures across multiple categories, including Titans, Leaders, Innovators, Icons, Artists, and Pioneers. High-profile names this year include U.S. President Donald Trump, Chinese President Xi Jinping, and major technology leaders such as Google CEO Sundar Pichai and YouTube CEO Neal Mohan.

Other political figures featured include Israeli Prime Minister Benjamin Netanyahu and Canadian Prime Minister Mark Carney, alongside global leaders in health, finance, and multilateral institutions.

Analysts say Dangote’s inclusion carries strong symbolic significance for Africa, particularly at a time of economic restructuring and renewed calls for industrialisation and self-sufficiency across the continent. His multi-billion-dollar refinery project, in particular, is seen as a strategic asset aimed at reducing Nigeria’s reliance on imported refined petroleum products, boosting local production, and creating thousands of jobs.

The recognition also reinforces Dangote’s global reputation as a leading figure in African entrepreneurship, with his business empire spanning critical sectors of the economy and influencing industrial policy conversations across the region.

The TIME100 announcement precedes the annual TIME100 Summit scheduled for April 22 in New York, where selected honourees are expected to participate in discussions on global leadership and innovation.

The full list and tributes are available via TIME Magazine’s official platforms.

Dangote Named Only Nigerian on TIME100 2026 Global Influence Ranking

Business

Experts Reject World Bank Fuel Import Advice, Warn of Economic Setback for Nigeria

Published

5 days ago

April 14, 2026

Trends Admin

Experts Reject World Bank Fuel Import Advice, Warn of Economic Setback for Nigeria

Energy experts have strongly criticised recent recommendations attributed to the World Bank urging Nigeria to deepen fuel importation and further liberalise its downstream petroleum sector, warning that the proposal is economically risky, poorly timed, and inconsistent with Nigeria’s petroleum law.

The criticism comes amid growing debate over the findings of the World Bank’s latest Nigeria Development Update, which some stakeholders say suggests a return to higher fuel import dependence as part of broader market reforms aimed at stabilising prices and improving efficiency.

However, energy economist Prof. Ken Ife faulted the recommendation, arguing that it contradicts Nigeria’s long-term goal of energy self-sufficiency and undermines ongoing investments in domestic refining capacity.

“You cannot advise a country struggling to achieve economic self-reliance to return to fuel importation,” Ife said, warning that such a policy shift would reverse gains made under the Petroleum Industry framework.

He stressed that the proposal runs counter to the provisions of the Petroleum Industry Act, particularly the Domestic Crude Supply Obligation, which prioritises crude allocation to local refineries to support domestic production.

According to him, abandoning this structure would weaken Nigeria’s refining ambitions, increase exposure to global oil shocks, and worsen pressure on foreign exchange reserves.

“We are building capacity that could exceed domestic demand. Reversing course now would discourage investors and destabilise the downstream sector,” he added.

Ife further questioned the empirical basis of the recommendation, describing it as inconsistent with the broader analytical strength of the World Bank report.

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Other energy analysts echoed similar concerns, arguing that Nigeria is already at a critical stage of expanding domestic refining, including private-sector-led investments that are expected to reduce dependence on imported petrol in the coming years.

Energy analyst Kelvin Emmanuel also criticised the proposal, insisting that it is disconnected from current global pricing realities and supply chain risks.

He argued that landing imported petrol in Nigeria is already significantly expensive when freight, insurance, and exchange rate factors are considered, making large-scale import reliance economically unsustainable.

Emmanuel further noted that rising crude oil prices—driven partly by geopolitical tensions in the Middle East—have pushed global energy markets into volatility, reinforcing the need for domestic refining resilience rather than import dependence.

He also disputed claims that imported fuel could be cheaper than locally refined products, arguing that such assumptions ignore structural cost realities in the global supply chain.

On inflation and fuel pricing, Emmanuel maintained that Nigeria’s challenges are linked more to policy implementation gaps than production shortages, particularly in crude allocation to local refineries as outlined in the Petroleum Industry Act.

“If domestic supply obligations are properly enforced, price stability will improve and market volatility will reduce,” he said.

He also criticised proposals suggesting that Nigeria should expand social safety nets through borrowing, arguing that such measures could worsen fiscal pressure and contradict responsible debt management principles.

While acknowledging that social protection is important, he insisted that funding should prioritise grants or targeted revenue sources rather than additional debt obligations.

The debate highlights growing tension between international policy advice and Nigeria’s domestic energy strategy at a time when the country is attempting to stabilise fuel supply, reduce import dependence, and strengthen local refining capacity.

Industry observers say the outcome of this policy direction could significantly shape Nigeria’s downstream petroleum sector, foreign exchange stability, and long-term energy security.