*Orders Crude Oil Sales Revenue Should Go To CBN Directly
By Ken Afor
President Bola Tinubu has instructed that revenue generated from crude oil sales by the Nigerian National Petroleum Company Limited (NNPCL) be paid directly to the Central Bank of Nigeria (CBN) to improve transparency and accountability.
As per reports monitored by TheNewDiplomat, this directive takes immediate effect, signifying the end of NNPCL’s involvement in receiving crude oil revenue and only providing accounts to the Tinubu-led federal government.
The age-old protocol has been that NNPCL receives the Revenue from crude oil sales and declares the amount to the Federation including both the Federal and states governments.
To some, it is believed that the new directive will prevent any gaps in crude oil sales and the declared receipts.
It would be recalled that a few weeks ago, the 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, asked the government to provide details of the crude oil that will be used to repay the recent $3.3 billion loan from the Afri-Exim Bank.
Also, recall last week that the CBN Governor, Mr. Olayemi Cardoso while delivering a keynote address at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report”, said that the partnership with the Ministry of Finance and NNPCL is focused on ensuring the repatriation of all foreign inflows are back to the Central Bank.
“This coordinated effort will greatly enhance the Bank’s foreign exchange flows and contribute to the accretion of reserves,” he said.
According to the apex bank chief, the recent adoption of a market-driven exchange rate policy “is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.
“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.”
“We are implementing a comprehensive strategy to improve liquidity in our FX markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years.
“Upholding the integrity of financial markets is crucial for building confidence. With the completion of an independent forensic review, we are addressing the backlog of valid FX transactions and we remain steadfast in our commitment to decisively address any infractions and abuses,” he added.
