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CBN Assumes The Role Of Dollar Revenue Approved By NNPCL

The Central Bank of Nigeria has created a department to deal with crude oil sales transactions by the Nigerian National Petroleum Company Limited, the Group Chief Executive Officer, NNPCL, Mele Kyari, announced on Thursday.

Kyari also revealed that the Board of Directors of NNPCL had approved the decision to move significant portions of the company’s revenues to the apex bank.

In January, it was reported that President Bola Tinubu had directed the CBN to assume the responsibility for crude oil sales proceeds from the NNPCL. Consequently, NNPCL is expected to submit the receipts for crude oil sales to CBN for vetting and documentation.

In a video made available to journalists in Abuja on the meeting between CBN delegation, led by the bank’s Governor, Olayemi Cardoso, and the management of NNPCL at the latter’s headquarters, Kyari welcomed the decision to move the oil firm’s transactions to CBN.

He said, “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.

“We made that decision in line with the directives of our Board of Directors to maintain safe obligor limits with commercial banks. And for us to do this, we do need additional support, particularly from the CBN to achieve this.

 “It has created a department that will deal with NNPC issues and will create no hindrance to our operations. We will continue to collaborate with the CBN to ensure that further improvements are received so that this relationship serves the best interest of our company and, of course, our country.”

On his part, Cardoso said the CBN had restructured its internal processes to be capable of taking on the enormous responsibility that would be placed on the bank by the national oil company.

The decision to move NNPCL’s oil sales transactions to CBN elicited diverse reactions last week, as some persons commended the move, while others kicked against it.

The 2023 presidential candidate of the People’s Democratic Party, 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.

According to him, Tinubu’s directive undermined the operational independence of the national oil company.

“Without prejudice to the possibility of any good that was intended in the decision of the Federal Government to make the CBN take over the responsibility for crude oil sales proceeds from NNPCL, it must be clearly stated that the action is not legal in its application,” Atiku had stated in a statement.

Meanwhile, NNPCL assured the public on Thursday that there was no imminent increase in the cost of petrol.

“NNPC Ltd. urges Nigerians to disregard unfounded rumours and assures them that there are no plans for an upward review of the PMS Price.

“Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country,” the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye, stated in a statement.

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