Forex crunch: Why NNPC domiciled its accounts with CBN
Sopuruchi Onwuka
The highly reported domiciliation of the accounts of the Nigerian National Petroleum Company (NNPC) Limited with the Central Bank of Nigeria (CBN) aims to ease the acute foreign exchange crunch that plagues businesses in the economy.
The Oracle Today reports that the Group Chief Executive Officer of NNPC Ltd, Mallam Mele Kyari, and the Governor of CBN, Mr. Olayemi Cardoso, collaborate on the decision of the national oil company to domicile a significant portion of its revenues and other banking services with the CBN.
They 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.
The CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions.
Both parties 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.
Insiders told our reporters that the national oil company accounts for over 60 percent of the country’s foreign exchange income volunteered to domicile its accounts with the central bank as a way of easing the forex squeeze currently hurting businesses in the economy and propelling inflation.
Meanwhile, NNPC had earlier assured the public that there is no imminent increase in the cost of Premium Motor Spirit (PMS), commonly known as petrol.
NNPC Ltd. urges Nigerians to disregard unfounded rumours and assures them that there are no plans for an upward review of the PMS price.
Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country.
