In a move, the Nigerian National Petroleum Company Limited (NNPCL) announced the establishment of a new department in collaboration with the Central Bank of Nigeria (CBN) to streamline crude oil sales transactions.
The Group Chief Executive Officer of NNPCL, Mele Kyari, disclosed this decision during a recent meeting with the CBN delegation, emphasizing the significance of maintaining safe obligor limits with commercial banks.
“We welcome the governor of the CBN and his senior management team to NNPC Ltd. We understand very clearly that this review of our decision to move significant portions of our revenues to the CBN is very timely,” said Kyari, highlighting the necessity of additional support from CBN to manage the company’s transactions.
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Echoing Kyari’s sentiments, the CBN Governor, Olayemi Cardoso, assured the public of the bank’s readiness to undertake the responsibility bestowed upon it by NNPCL. “We have restructured and strengthened our internal processes such that we will be very capable of taking on this enormous responsibility that will be placed in the central bank,” Cardoso affirmed.
The decision to entrust NNPCL’s oil sales transactions to CBN sparked varied reactions, with some applauding the move while others expressed skepticism.
Notably, former Vice President and 2023 presidential candidate of the Peoples Democratic Party, Atiku Abubakar, criticized the directive, citing its potential illegality and infringement on NNPCL’s operational independence.
“Atiku Abubakar, for instance, said the Federal Government’s directive to CBN to take over the responsibility for crude oil sales proceeds from NNPCL was illegal,” reported the news.
However, amidst the debates surrounding this decision, NNPCL assured the public that there would be no immediate hike in petrol prices, urging Nigerians to disregard rumors and avoid panic buying. “Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country,” affirmed Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL.
NNPCL’s collaboration with CBN marks a significant shift in the management of Nigeria’s oil revenues, signaling a proactive approach to financial governance in the country’s energy sector.