President Tinubu Moves Crude Oil Sales Revenue From NNPCL To CBN
In a significant move aimed at bolstering transparency and accountability, President Bola Tinubu has instructed the Central Bank of Nigeria (CBN) to assume control of crude oil sales, a responsibility previously held solely by the Nigerian National Petroleum Company Limited (NNPCL).
Over the years, the NNPCL maintained exclusive control over crude oil sales, only submitting accounts to the Federal Government. The directive from President Tinubu signifies a paradigm shift in ensuring a more transparent process.
Under the new arrangement by President Tinubu, the NNPC will now submit receipts for crude oil sales to the CBN for thorough vetting and documentation. Sources within the CBN have confirmed that this adjustment will result in immediate forwarding of payment receipts for oil sales to the apex bank.
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The move is designed to eliminate any gaps in the process of crude oil sales and declared receipts. Analysts argue that the previous system allowed the NNPC to have overall responsibility, rendering any amount it wished to the Federal Government for crude oil sales.
This shift is seen as a necessary response to the challenges faced by declining oil revenue, attributed to lower oil production resulting from crude theft and other illicit practices.
CBN Governor, Olayemi Cardoso, highlighted the collaborative efforts between the Ministry of Finance and the NNPCL during a recent keynote address at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report.” He emphasized that this collaboration aims to ensure the return of all foreign inflows to the Central Bank.
Cardoso expressed optimism about the impact of these coordinated efforts on foreign exchange flows, contributing to the accretion of reserves.
He stated, “The expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determined exchange rate policy by the CBN.”
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This reform by President Tinubu, according to Cardoso, is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.
The anticipated consistent and stable exchange rate is expected to boost investor confidence and attract foreign investment, enhancing Nigeria’s appeal to global investors.
