Oredola Adeola

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has agreed to the Federal Government’s directive for the Central Bank of Nigeria (CBN) to oversee the management of oil sales revenue, including the domiciliation of a significant portion of its revenues and other banking services with the apex bank through enhanced digital platforms.

This was confirmed in a joint statement released by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd. and Hakama Ali, Acting Director, Corporate Communications Department, Central Bank of Nigeria, and obtained by Advisors Reports on Thursday.

According to the statement, Mele Kyari, Group Chief Executive Officer NNPC Mallam and Mr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), on Thursday 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.

Soneye  and Ali further confirmed that the NNPC Ltd. and CBN Chiefs acknowledged 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.

Advisors Reports gathered that both parties have also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited.

Despite concerns raised about the legality and implications of this decision by various stakeholders The CBN however emphasised that despite the decision the NNPC Ltd. will continue to have banking transactions with commercial banks as required.