According to Western Post, NNPC will now submit receipts for crude oil sales to CBN for verification and documentation.
President Bola Tinubu has reportedly issued a new directive to the Central Bank of Nigeria (CBN). The order was for the apex bank to take over the responsibility of crude oil sales from the Nigerian National Petroleum Company Limited (NNPCL). The move was intended to promote transparency and accountability since NNPCL has held exclusive control over crude oil sales for years and has only offered accounts to the Federal Government.
According to Western Post, under the new arrangement, NNPC will submit receipts for crude oil sales to CBN for verification and documentation. A source within the CBN confirmed to the news platform that receipts of payment for the oil sales would be forwarded to the apex bank immediately. The source added that the new arrangement would prevent any gap in the crude oil sales and declared receipts.
Experts have criticized the arrangement, saying that it is not transparent since it makes the NNPC responsible for rendering accounts for whatever amount it wishes to the FG for the crude oil sales. They added that the move is no longer feasible given the declining oil revenue, resulting from crude theft and other sharp practices.
It is worth noting that the CBN Governor, Olayemi Cardoso, recently stated that the collaboration with the Ministry of Finance and the NNPCL is to ensure that all foreign inflows are returned to the Central Bank.
Cardoso, who was delivering a keynote address at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report”, said, “This coordinated effort will greatly enhance the Bank’s foreign exchange flows and contribute to the accretion of reserves.
“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.
“This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing arbitrage opportunities.
“The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.”