The Nigerian National Petroleum Company (NNPC) Limited has partnered with the Central Bank of Nigeria (CBN) to establish revenue management guidelines.
The limit was decided during a meeting in Abuja between CBN Governor Olayemi Cardoso and NNPCL Group CEO Mele Kyari.
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.
Joint Statement by the Nigerian National Petroleum Company (NNPC Ltd) and the Central Bank of Nigeria (CBN) on Banking Relationship pic.twitter.com/rTorAOx6nC
— Central Bank of Nigeria (@cenbank) February 8, 2024
Joint Statement by the Nigerian National Petroleum Company (NNPC Ltd.) and the Central Bank of Nigeria (CBN) on Banking Relationship
NNPC, CBN to Strengthen Relationship to Guarantee Seamless Commercial Operation
The Group Chief Executive Officer of the Nigerian National… pic.twitter.com/G8DXO3YgdG
— NNPC Limited (@nnpclimited) February 8, 2024