In an apparent move to resolve the foreign exchange crisis in the country, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.), Mallam Mele Kyari, and the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, have reviewed the decision of the NNPC Ltd. to domicile a significant portion of its revenues and other banking services with the CBN.
Mr. Cardoso, when he appeared before the House of Representatives on Tuesday
to address critical concerns related to the exchange rates and inflationary pressures in the economy, disclosed that the Nigerian foreign exchange market was currently facing increased demand pressures, causing a continuous decline in the value of the naira.
He listed the factors contributing to the situation to include speculative forex demand, inadequate forex supply due to the non-remittance of crude oil earnings to the CBN, increased capital outflows, and excess liquidity from fiscal activities.
However, following their meeting in Abuja on Thursday, February 8, 2024, the NNPC Ltd. and CBN Chiefs 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.
A joint Statement by Mr. Olufemi Soneye, the Chief Corporate Communications Officer of the NNPC Ltd., and Hakama Sidi Ali, the Ag. Director, Corporate Communications Department, CBN, said, the CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions.
Both parties have also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited and noted that NNPC Ltd. continues to have banking transactions with commercial banks as required.
