The Central Bank of Nigeria (CBN) has established a department dedicated to handling crude oil sales transactions by the Nigerian National Petroleum Company Limited (NNPCL), according to the Group Chief Executive Officer of NNPCL, Mele Kyari. Kyari also mentioned that the NNPCL Board of Directors had approved the decision to transfer significant portions of the company’s revenues to the CBN. This move follows earlier reports that President Bola Tinubu directed the CBN to take charge of crude oil sales proceeds from the NNPCL, requiring the company to submit sales receipts to the CBN for vetting and documentation.
During a meeting between the CBN delegation, led by Governor Olayemi Cardoso, and the management of NNPCL, Kyari expressed support for the decision, emphasizing the need for additional CBN support to maintain safe obligor limits with commercial banks. He highlighted the importance of collaboration with the CBN to ensure the best interests of NNPCL and the country, noting the creation of a department at the CBN dedicated to handling NNPC issues.
Governor Cardoso acknowledged the restructuring and strengthening of internal processes at the CBN to handle the significant responsibility placed on the bank by the national oil company. He expressed confidence in the effective collaboration between the CBN and NNPCL, emphasizing that it would benefit both entities and Nigeria as a whole.
The decision to move NNPCL’s oil sales transactions to the CBN has generated diverse reactions, with some commending the move and others expressing concerns. Notably, former Vice President Atiku Abubakar criticized the directive, stating that it undermined the operational independence of the national oil company and amounted to an illegal violation of its legal status.
In addition to the CBN-related developments, NNPCL assured the public that there is no imminent increase in the pump price of Premium Motor Spirit (PMS), commonly known as petrol. The company urged Nigerians to disregard rumors and advised against panic buying, emphasizing the ample availability of PMS across the country.
