The Nigerian National Petroleum Company (NNPC) Limited and the Central Bank of Nigeria (CBN) have set limits for the management of the oil firm’s revenue.
In a statement on Thursday, Olufemi Soneye, NNPC chief corporate communications officer, said the limit was set when Mele Kyari, group chief executive officer of the oil firm, and Olayemi Cardoso, CBN governor, met in Abuja. Both Kyari and Cardoso had met to review the decision to transfer revenue generated by NNPC to the apex bank.
This followed the announcement made by Cardoso on January 24, 2024, at the launching of the Nigerian Economic Summit Group (NESG) macroeconomic outlook report, where he said NNPC and the ministry of finance have agreed to remit their foreign exchange inflows to the apex bank, to boost the nation’s external reserves.
Soneye said both Kyari and Cardoso “reviewed the decision of the NNPCL to domicile a significant portion of its revenues and other banking services with the CBN”.
He said the meeting was also held to strengthen CBN and NNPC’s relationship to guarantee seamless commercial operation.
Following their meeting, the spokesperson said they noted the value created by the decision for all parties, especially in providing NNPC 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 NNPCL transactions,” he said “Both parties have also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC limited and noted that NNPCL continues to have banking transactions with commercial banks as required.”
The decision to transfer NNPC revenue to CBN has been met with mixed reactions, with Kingsley Moghalu, former CBN deputy governor, praising the decision, while Atiku Abubakar, former vice-president, criticising it.