Tinubu Reportedly Orders NNPCL to Transfer Crude Oil Revenues to CBN Amid Naira Free-fall
- President Bola Tinubu has ordered that the CBN will now be in charge of revenue generated from the sale of crude oil
- The NNPC will now begin to provide CBN with receipts for sales of crude oil for verification and documentation
- It is believed that the new development would close the gap in crude oil sales and declared receipts
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Nigerian National Petroleum Company Limited (NNPCL) would no longer be in charge of revenue generated from the sale of crude oil.
Source: UGC
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According to a directive from President Bola Tinubu, the Central Bank of Nigeria (CBN) will now take over the management of the revenue accrued from oil sales.
An insider at the CBN verified the recent occurrence, stating that the apex bank will receive the payment receipts for the oil sales with immediate effect.
NNPC to provide receipt of sales
According to the New Telegraph report, NNPC will provide CBN with receipts for crude oil sales for verification and documentation as per the new agreement.
For years, the NNPC has remained in complete control of crude oil sales and has only ever submitted reports to the federal government.
This arrangement is no longer viable in light of the dropping oil revenue and decreased oil output as a result of sharp practices and crude theft.
The new system is expected to prevent any discrepancy between claimed receipts and crude oil sales.
In a statement made last week, Olayemi Cardoso, the governor of the CBN, said that the cooperation between the Ministry of Finance and the NNPCL is to guarantee that all foreign inflows are remitted to the Central Bank.
He said:
“This coordinated effort will greatly enhance the Bank’s foreign exchange flows and contribute to the accretion of reserves.”
According to him, the expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the CBN's recent implementation of a market-determined exchange rate policy.
He added:
“This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing arbitrage opportunities.
“The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.”
NNPCL remitted zero funds to the federation account in 2022
Legit.ng reported that the NNNPCL made zero allocation to the Federation Account in 2022 due to subsidy payments on petrol.
The company's Chief Financial Officer, Umar Ajiya, disclosed this in a documentary.
The NNPCL is a primary revenue-generating agency in Nigeria as it manages and sells Nigeria's crude oil and gas, among other essential functions.
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Source: Legit.ng
