The Nigerian National Petroleum Company (NNPC) Limited and the Central Bank of Nigeria (CBN) have established limits for the management of the oil firm’s revenue.
This decision was disclosed by Olufemi Soneye, NNPC’s chief corporate communications officer, in a statement released on Thursday.
The limit was set during a meeting between Mele Kyari, the group chief executive officer of NNPC, and Olayemi Cardoso, the governor of the CBN, held in Abuja. The purpose of the meeting was to review the decision regarding the transfer of revenue generated by NNPC to the apex bank.
This development follows an announcement made by Cardoso on January 24, 2024, during the launch of the Nigerian Economic Summit Group (NESG) macroeconomic outlook report. At that event, Cardoso stated that NNPC and the Ministry of Finance had agreed to remit their foreign exchange inflows to the CBN to bolster the nation’s external reserves.
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Soneye revealed that Kyari and Cardoso “reviewed the decision of the NNPCL to domicile a significant portion of its revenues and other banking services with the CBN” during the meeting. Additionally, the meeting aimed to strengthen the relationship between CBN and NNPC to ensure smooth commercial operations.
Following their discussions, the spokesperson highlighted that both parties acknowledged the value created by the decision, particularly in providing NNPC with an enhanced platform for managing its cash-holding obligor limits in commercial banks, as set by the board of directors.
“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.”
