NNPCL Board Greenlights Transfer of US Dollar Revenue to CBN, Strengthening Collaboration for Economic Stability

The board of directors of NNPCL has given its approval for the transfer of revenue in US dollars to the Central Bank of Nigeria (CBN).

The announcement made by Mele Kyari, the Group Chief Executive Officer of NNPCL, on Thursday, revealed that the Central Bank of Nigeria has established a dedicated department to handle transactions related to the sale of crude oil by the Nigerian National Petroleum Company Limited.

According to Kyari, it was disclosed that the decision to transfer a substantial portion of NNPCL’s earnings to the central bank had been approved by the company’s Board of Directors.

He said, “We welcome the governor of the CBN and his senior management team to NNPC Ltd. We understand very clearly that this review of our decision to move significant portions of our revenues to the CBN is very timely.

“We made that decision in line with the directives of our Board of Directors to maintain safe obligor limits with commercial banks. And for us to do this, we do need additional support, particularly from the CBN to achieve this.

“We are a very huge company, our transaction and liquidity levels are very high, and perhaps we are the largest business in this country. We are also happy that the CBN has created a robust digital platform for our transactions.”

“It has created a department that will deal with NNPC issues and will create no hindrance to our operations. We will continue to collaborate with the CBN to ensure that further improvements are received so that this relationship serves the best interest of our company and, of course, our country.”

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On his end, Cardoso mentioned that the CBN had made adjustments to its internal procedures in order to be well-equipped for the significant task that would be entrusted to the bank by the national oil company.

“We are looking forward to further collaboration with NNPC and I have absolutely no doubt in my mind that this effective collaboration will work in the best interest of NNPC and Nigeria in general.”

He said, “We have come to this particular stage where the NNPC has made the decision to move a respectable part of its business to the CBN.

“I also want to say that we have restructured and strengthened our internal processes such that we will be very capable of taking on this enormous responsibility that will be placed in the central bank.