The Central Bank of Nigeria(CBN) and Nigerian National Petroleum Company Limited (NNPCL) have reviewed the decision to domicile a significant portion of the company’s revenues and other banking services with the apex bank.
The NNPCL had recently decided to move its accounts to the CBN in a bid to boost investor’s confidence and in a way, address foreign exchange crisis.
In a meeting on Thursday, the NNPCL Group Chief Executive Officer (GCEO) Mele Kyari said it would need additional support from the apex bank regarding its decision.
Already, he said the CBN has created a robust digital platform for transactions as well as a department that will deal with NNPC issues.
“We understand very clearly that this review of our decision to move a significant portion of our revenues to the Central Bank of Nigeria is very timely. We made that decision to align 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 central bank to achieve this. We’re a very huge company, our transaction and liquidity levels are very high. And perhaps we are the largest business in this country. And we’re also happy that this CBN has created a very, very robust digital platform for transactions and also created a department that will deal with NNPC issues and it will create no hindrances to our operation.”
On his part, the CBN Governor, Olayemi Cardoso, said the Bank has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions.
He noted that the CBN has restructured and strengthened internal processes, “such that we will be very capable of taking on this enormous responsibility that will be placed in the central bank.”
The duo noted the value created by the decision for all parties, especially in providing the NNPC Ltd. with an improved platform for managing its cash holding obligor limits in commercial banks set by the Board of Directors.
They also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited.
“We’ll continue to collaborate with the Central Bank of Nigeria to ensure that further improvements are received to ensure that this relationship serves the best interests of our company. And of course, ultimately, our country,” Kyari said.
Meanwhile, in another development, the NNPCL has allayed fears of possible increase in pump price of the Premium Motor Spirirt (PMS) also known as Petrol.
In a statement issued by its spokesperson, Olufemi Soneye, the company urged Nigerians to disregard such unfounded rumours stressing that there are no plans for an upward review of price.
“Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country,” it said.