The Nigerian National Petroleum Company (NNPC) Limited and the Central Bank of Nigeria (CBN) have jointly set limits for the management of revenue generated by oil firms.
This decision was reached during a meeting between Mele Kyari, NNPC’s Group Chief Executive Officer, and Olayemi Cardoso, Governor of the CBN, held in Abuja.
The initiative follows a statement by Cardoso on January 24, 2024, during the launch of the Nigerian Economic Summit Group (NESG) macroeconomic outlook report.
Cardoso announced that the NNPC and the Ministry of Finance had agreed to remit their foreign exchange inflows to the CBN to bolster the nation’s external reserves.
According to Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, both Kyari and Cardoso deliberated on the decision to transfer revenue to the apex bank.
They also aimed to reinforce the relationship between CBN and NNPC to ensure smooth commercial operations.
Soneye highlighted the benefits of the decision, emphasizing the improved platform it provides NNPC for managing its cash-holding obligor limits in commercial banks as set by the board of directors.
He further noted that the CBN has introduced enhanced digital platforms and specific limits to oversee NNPC transactions.
The collaboration between NNPC and CBN has garnered mixed reactions across the country with Atiku criticising the move.
The decision marks a significant step in enhancing transparency and efficiency in managing oil firm revenues, with both parties committed to further collaboration for seamless operations.