Report Alleges Deliberate Move by NNPC to Transfer Revenue Accounts to CBN, Cites Reasons
Following reports that the federal government directed the Nigerian National Petroleum Company Limited (NNPCL) to move its accounts to the Central Bank of Nigeria (CBN), new information suggests a different perspective to the story.
Initially reported that the NNPCL would no longer handle revenue from the sale of crude oil, a recent New Telegraph report reveals that the CBN will now manage the revenue generated from oil sales, as per a directive from President Bola Tinubu.
According to Daily Trust’s findings, NNPCL voluntarily decided to move its accounts to the apex bank to support the CBN’s liquidity management objectives. Sources indicate that this move aims to assist the CBN in enhancing liquidity in both naira and dollar components.
The source explained that, in line with its limited liability company status as per the Petroleum Industry Act of 2021, NNPCL previously held its accounts with commercial banks. The decision to move its accounts to the central bank was characterized as a supportive measure by the national oil company to increase foreign cash inflows, and it was not a mandatory requirement for NNPCL to domicile its accounts with the CBN.
The decision to assist the CBN with account opening was reportedly made during a meeting at the Ministry of Finance’s headquarters, with representatives from the finance ministry, NNPCL, CBN, and the Office of the Accountant General of the Federation present.
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In a related development, it was reported that NNPCL remitted zero funds to the Federation Account in 2022, attributing it to subsidy payments on petrol. The company’s Chief Financial Officer, Umar Ajiya, disclosed this information in a documentary.
The Nigerian National Petroleum Company Limited (NNPCL) plays a crucial role as a primary revenue-generating agency in Nigeria. Its responsibilities include the management and sale of Nigeria’s crude oil and gas. Beyond that, the NNPCL is involved in various essential functions within the country’s oil and gas sector, contributing significantly to the nation’s economic activities and revenue generation.
