BREAKING: CBN instructed by Tinubu to assume control of crude sales from NNPC

A shake-up in the oil sector has been announced by President Bola Tinubu in an effort to increase transparency in light of declining oil earnings and questionable NNPC practices.

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The Nigerian National Petroleum Company Limited’s (NNPCL) sales of crude oil would now be under the supervision of the Central Bank of Nigeria (CBN), per the President’s request.

Before, the NNPC handled all aspects of selling crude oil on its own and simply submitted reports to the federal government. Long-standing criticism of this system has been that it was opaque, allowing the NNPC to understate its earnings.

According to the new guideline, the NNPC must provide the CBN with all sales receipts for crude oil so that it can be verified and documented. This attempts to guarantee accurate records of oil revenue and close any possible reporting gaps.

The goal of the partnership between the Ministry of Finance and the NNPCL, according to CBN Governor Mr. Olayemi Cardoso, is to guarantee that all foreign inflows are remitted to the Central Bank.