FUEL SUBSIDY: Oil marketers set to import petrol as CBN liberalizes forex
By Eyo Nsima
Oil marketers in Nigeria have concluded plans to import petrol from the global market as a result of the latest liberalization of exchange rates by the Central Bank of Nigeria, CBN.
Checks by The Daily, www.thedaily-ng.com, indicated that many stakeholders, including the independent marketers, major marketers and depot owners that used to buy petrol from the NNPC Limited are well–pleased by the action of the CBN.
Some of them that spoke with The Daily, www.thedaily-ng.com, said they would soon embark on massive importation of the product.
The marketers said they were previously constrained from importing the product because the previous administration only granted foreign exchange to NNPC Limited.
In its statement, the Director, of Financial Markets, CBN, Dr. Angela Sere-Ejembi, stated: “The Central Bank of Nigeria (CBN) wishes to inform all authorized dealers and the general public of the following immediate changes to operations in the Nigerian Foreign Exchange (FX) Market: Abolishment of segmentation. All segments are now collapsed into the Investors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
“Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017, and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window.
“The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.
“Proscription of trading limits on oversold FX positions with permission to hedge short positions with Over-The Counter-futures. Limits on overbought positions shall be zero.
“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
“Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades. The operational hours of trades shall be from 9 am to 4 pm, Nigeria time.
“Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023.”
She added: “Further guidance on these matters shall be communicated in due course. All market participants and the general public are kindly enjoined to abide by these rules.”
