After Many Years, NNPC Finally Strikes Deal With CBN On Revenue Management

• The Nigerian National Petroleum Company Limited (NNPCL) and the CBN have agreed to set a limit on the oil company’s revenue management
• The CBN governor and the NNPCL CEO met in Abuja to set the limit for the management of the oil firm’s revenue
• The decision to move NNPCL revenue to the CBN drew mixed reactions from Nigerians

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The Nigerian National Petroleum Company Limited (NNPCL) and the Central Bank of Nigeria (CBN) have agreed to set a limit for managing NNPC’s revenue.

NNPC’s chief corporate communications officer, Olufemi Soneye, said the limit was set when the group chief executive officer of NNPCL, Mele Kyari, visited the CBN governor, Olayemi Cardoso, in Abuja.

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The duo met to review the plan to transfer NNPC revenue to the apex bank.

According to a report by TheCable, the move followed the announcement by Cardoso on January 24, 2024, at the launch of the Nigerian Economic Summit Group (NESG) macroeconomic outlook report, where he said that the NNPC and the finance ministry have agreed to remit their Forex inflows to the CBN to boost Nigeria’s external reserves.

The NNPC spokesman said Cardoso and Kyari reviewed the decision of the national oil company to keep a significant portion of its revenues and other banking services with the CBN.

Soneye said the duo held the meeting to strengthen CBN and NNPCL’s relationship and to ensure seamless commercial operation.

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The decision draws mixed reactions

He said both Kyari and Cardoso noted the value created by the decision for all the parties, especially in providing NNPCL with an improved platform for managing its cash-holding limits in commercial banks set by the board of directors.

The statement partly reads:

“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.”

Nigeria’s former vice president, Atiku Abubakar, has criticised the plan to move NNPC revenue to the CBN, while former Deputy Governor of the CBN, Kingsley Moghalu, applauded the decision.

NNPC, marketers speak as fuel scarcity spreads

Legit.ng reported that oil marketers have expressed fears that petrol may be scarce if the Nigerian National Petroleum Company Limited (NNPCL) does not make petrol available to depot owners and other dealers soon.

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The marketers said the long queues at the filling stations in Lagos and parts of Ogun state may spread to other parts of the country if the national oil firm needs to act faster.

The queues were also visible at filling stations in some Lagos and Ogun state hot spots.

Source: Legit.ng