The Nigerian National Petroleum Corporation (NNPC) Limited and the Central Bank of Nigeria (CBN) have reached an agreement to establish specific boundaries governing the management of the oil firm’s revenue.
Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, disclosed on Thursday that the limit was established during a meeting between Mele Kyari, the Group Chief Executive Officer of the oil company, and Olayemi Cardoso, the Governor of the Central Bank of Nigeria, held in Abuja.
Kyari and Cardoso’s meeting focused on reviewing the decision to transfer revenue generated by NNPCL to the apex bank.
He mentioned that the meeting also aimed to enhance the relationship between CBN and NNPC, ensuring smooth commercial operations.
What NNPCL is Saying
According to the statement, both parties recognized the significance of the decision for all stakeholders, particularly in granting NNPCL an improved platform for overseeing its cash-holding obligations limits in commercial banks, as directed by the board of directors.
- “The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Mallam Mele Kyari, and the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, have reviewed the decision of the NNPC Ltd. to domicile a significant portion of its revenues and other banking services with the CBN.
- “Following their meeting in Abuja on Thursday, February 8, 2024, the NNPC Ltd. And CBN Chiefs noted the value created by the decision for all parties, especially in providing the NNPC Ltd. with an improved platform for managing its cash holding obligor limits in commercial banks set by the Board of Directors.
- “The CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. Transactions.
- “Both parties have also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited and noted that NNPC Ltd. Continues to have banking transactions with commercial banks as required,” the statement reads in part.
What you should know
- Earlier in January, the CBN governor, Yemi Cardoso, said NNPCL and the Ministry of Finance have agreed to remit their foreign exchange inflows to the apex bank, to boost the nation’s external reserves.
- In addition, there are also reports that President Bola Tinubu ordered that the proceeds from the Crude Oil be remitted to the Central Bank.
- According to the report, NNPCL will submit receipts for crude oil sales to CBN for vetting and documentation
- The report also noted that a decision was made to encourage transparency and accountability in the oil and gas sector.
