Tinubu orders CBN to take over the supervision of crude oil sale receipts from NNPC

PRESIDENT Bola Tinubu has ordered the Central Bank of Nigeria (CBN) to take over the supervision of crude oil sales receipts from the Nigerian National Petroleum Company (NNPC) as part of plans to stem the corruption and rot that is bedevilling the sector.

Nigeria's crude oil industry is the country's cash cow but for decades, it has been a cesspit of corruption, as illegal bunkering, oil theft and non-remittance of proceeds has become the order the day. Former CBN chairman Alhaji Lamido Sanusi, once challenged the NNPC to explain why it failed to remit crude oil sale proceeds to the treasury.

For his outburst, Alhaji Sanusi was sacked but that government has finally decided to act, as from now on, receipts of oil sale payments will be forwarded to the CBN with immediate effect. Under the new arrangement, the NNPC will submit receipts for crude oil sales to CBN for vetting and documentation.

Up until now, the NNPC has maintained sole control over crude oil sales, only rendering accounts to the federal government. This arrangement is no longer tenable amid declining oil revenue and the new regime us designed to block any gap in the crude oil sales and declared receipts.

Last week, the CBN governor Olayemi Cardoso, stated that the collaboration between the finance ministry and the NNPC is to ensure that all foreign inflows are returned to the bank. He added: “This coordinated effort will greatly enhance the bank’s foreign exchange flows and contribute to the accretion of reserves.

“The expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determined exchange rate policy by the CBN. This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing arbitrage opportunities.

 “We are implementing a comprehensive strategy to improve liquidity in our foreign exchange markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years."