NNPCL, CBN set limit for oil revenue management

The CBN Governor, Olayemi Cardoso, meets with the NNPCL Group Chief Executive Officer, Mele Kyari, in Abuja on February 8, 2024.

The Nigerian National Petroleum Company (NNPC) Limited has collaborated with the Central Bank of Nigeria (CBN) to set limits for the management of the oil firm’s revenue.

The limit was set following a meeting between the CBN Governor, Olayemi Cardoso, and the NNPCL Group Chief Executive Officer, Mele Kyari, in Abuja.

This was disclosed in a statement jointly signed on Thursday by the NNPCL spokesman, Olufemi Soneye, and his CBN counterpart, Hakama Sidi Ali.

Kyari and Cardoso decided to meet to review the decision to transfer revenue generated by NNPCL to the apex bank.

According to the statement, Kyari and Cardoso “reviewed the decision of the NNPCL to domicile a significant portion of its revenues and other banking services with the CBN”.

The meeting also allowed the duo to strengthen CBN and NNPC’s relationship to guarantee seamless commercial operation.

“The CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPCL transactions,” the statement read.

“Both parties have also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC limited and noted that NNPCL continues to have banking transactions with commercial banks as required.”

Cardoso and Kyari noted the value created by the decision for all parties, especially in providing NNPC with an improved platform for managing its cash-holding obligor limits in commercial banks set by the board of directors.

Last month, Cardoso said the NNPCL and the Finance Ministry have agreed to remit their foreign exchange inflows to the CBN. The move is part of decisions to boost Nigeria’s external reserves.