According to a joint statement published, the Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Company Limited (NNPCL) have decided to deepen their partnership in order to ensure assured flawless commercial operation.
The Federal Government (FG) has instructed the apex bank to supervise the administration of oil sales and foreign currency earnings earned by the state oil behemoth that recently transformed to a limited liability company, as part of steps to track US dollar money generated from oil sales.
Following a meeting, NNPCL announced that it has decided to house part of its banking services as well as its income with the apex bank. This choice was made in response to public outcry because NNPCL has not been able to account for foreign exchange earnings from the sale of crude oil over the years.
Nigeria is suffering from an acute US dollar shortage despite improved oil production. At a meeting in Abuja, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mallam Mele Kyari, and the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, 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 statement reads that the CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions. It stressed that 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.
