Breaking!!!

President Bola Tinubu has announced a shake-up in the oil sector to ensure transparency amid concerns about declining oil revenue and opaque practices within the NNPC.

The President has directed the Central Bank of Nigeria (CBN) to take over responsibility for crude oil sales from the Nigerian National Petroleum Company Limited (NNPCL).

Previously, the NNPC solely controlled crude oil sales, only submitting accounts to the federal government. Critics have long argued that this arrangement lacked transparency, allowing the NNPC to underreport earnings.

The new directive requires the NNPC to submit all receipts for crude oil sales to the CBN for vetting and documentation. This aims to close any potential gaps in reporting and ensure accurate records of oil revenue.

CBN Governor, Mr. Olayemi Cardoso, had last week said the collaboration with the Ministry of Finance and the NNPCL is to ensure that all foreign inflows are returned to the Central Bank.

“This coordinated effort will greatly enhance the Bank’s foreign exchange flows and contribute to the accretion of reserves,” he said.

Read on..
https://dailypostngr.com/2024/01/tinubu-shakes-up-oil-industry-directs-central-bank-to-take-over-crude-sales-from-nnpc/

Shake-up is necessary, but I hope CBN can handle this together with the current Naira exchange rate crisis they are still battling with.

Isn't this decision a constitutional matter that may require tweaking of the CBN act by the national assembly?

SLS has for the umpteenth time been accusing the NNPCL of non remittance of revenue to the consolidated federation account. This may be a panacea to mitigating this anomaly I guess.

matify83:
This may be a panacea to mitigating this anomaly I guess.

Sure, if managed well.
Per Cardoso, “This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage."

Thissystem:


Sure, if managed well.
Per Cardoso, “This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage."

I like the caveat" if managed well "

Most policy decisions are good on paper but how Nigerians manage to circumvent the checks and balances beats my imagination.

The arbitragers are already studying the details of this new policy and exploring the lacunae through which to exploit the system.

Until we ouste those abokis out of all forex generating parastatals, cbn policies will always get ambushed via the parallel market

matify83:


I like the caveat" if managed well "

Most policy decisions are good on paper but how Nigerians manage to circumvent the checks and balances beats my imagination.

The arbitragers are already studying the details of this new policy and exploring the lacunae through which to exploit the system.

Correct! Often we have good blueprint, great policies. But implementation according to written guidelines and rules remains a big problem.

Until we ouste those abokis out of all forex generating parastatals, cbn policies will always get ambushed via the parallel market

chidiokay:
Until we ouste those abokis out of all forex generating parastatals, cbn policies will always get ambushed via the parallel market

BAT is a strategist. If you change the leadership the north would cry again. Cut off the head of the octopus and the arms becomes useless. Baba is firing from all cylinders grin

I hope this directive improved our economy

SWATMan:



BAT is a strategist. If you change the leadership the north would cry again. Cut off the head of the octopus and the arms becomes useless. Baba is firing from all cylinders grin

BAT moves so far aint convincing enough for me, i remain skeptical cos i know BAT will always chose to be a good politician over being a good leader should the need arise