The Nigerian National Petroleum Company (NNPC) Limited has collaborated with the Central Bank of Nigeria (CBN) to set limits for the management of the oil firm’s revenue.
The limit was set following a meeting between the CBN Governor, Olayemi Cardoso, and the NNPCL Group Chief Executive Officer, Mele Kyari, in Abuja.
This was disclosed in a statement jointly signed on Thursday by the NNPCL spokesman, Olufemi Soneye, and his CBN counterpart, Hakama Sidi Ali.
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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.
Speaking after the meeting, the NNPC GCEO said the decision to move significant portion of its revenue to the central bank is timely.
Kyari said, “We understand very clearly that this review of our decision to move significant portion of revenues to the Central Bank of Nigeria is timely. We made that decision in line with the directives of our board of directors to maintain obligor limits with financial banks. For us to do this we do need additional support particularly from the central bank to achieve this.
“We are a huge company, our transaction liquidity levels are very high, perhaps we are the largest business in discounting. We are also happy that the CBN has created very robust digital platform for our transactions and also created a department that will deal with all NNPC issues and it will create no hindrance to our operations.
“We will continue to collaborate with the Central Bank of Nigeria to ensure that further improvements are received to ensure that this relationship serve the best interest of our company and ultimately our country.”
Also speaking, the Cardoso said the CBN has strengthen its internal processes to ensure that the NNPC collaboration succeeds.
“We have come to this particular stage where the NNPC has made a decision to move respectable part of its business to the Central Bank of Nigeria. And 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 on the central bank.
“We are looking forward to further collaborations with the NNPC. I have absolutely no doubt in my mind that this collaboration will work in the best interest of NNPC and Nigeria in general,” Cardoso said.