NNPCL to Domicile Revenue with CBN - Official Statement

The Nigerian National Petroleum Company Limited (NNPCL) and the Central Bank of Nigeria (CBN) have agreed to strengthen their relationship toward the achievement of guaranteed seamless commercial operation, according to a joint statement released.

As part of efforts to track US dollar revenue generated from oil sales, the Federal Government (FG) has directed the apex bank to oversee the management of oil sales and foreign currency revenue generated by the state oil giant recently converted to a limited liability company.

After a meeting, NNPCL said it has agreed to domicile its revenue with the apex bank, including some banking services. This decision followed public criticism that NNPCL has been unable to account for foreign currency receipts from crude oil sales over the years.

Nigeria is suffering from an acute US dollar shortage despite improved oil production. At a meeting in Abuja, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited, Mallam Mele Kyari, and the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, reviewed the decision of the NNPC Ltd. to domicile a significant portion of its revenues and other banking services with the CBN.

Following their meeting in Abuja on Thursday, February 8, 2024, the NNPC Ltd. and CBN Chiefs noted the value created by the decision for all parties, especially in providing the NNPC Ltd. with an improved platform for managing its cash holding obligor limits in commercial banks set by the Board of Directors.

The statement reads that the CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions. It stressed that both parties have also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited and noted that NNPC Ltd. continues to have banking transactions with commercial banks as required. Tax Dispute: MultiChoice to Pay $37.3m to FIRS

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