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

According to the President of Nigeria, this is for transparency and accountability

Under the new arrangement, NNPC will submit receipts for crude oil sales to CBN for vetting and documentation.

Source within the CBN confirmed the development to Western Post, saying receipts of payment for the oil sales will be forwarded to the apex bank with immediate effect.

NNPCL over the years has maintained sole control over crude oil sales, only rendering accounts to the Federal Government. Many say this arrangement is opaque as it makes the NNPC the overall responsibility rendering whatever amount it wishes to FG for the crude oil sales.

This arrangement is no longer tenable amid declining oil revenue following lower oil production arising from crude theft and other sharp practices.

For instance, former Vice President and PDP Presidential Candidate in the last general election, Alhaji Atiku Abubakar, had recently raised a related issue, asking for details of crude oi that will be used to retire the recent $3.3 billion loan from the Afri-Exim Bank.

The new arrangement will block any gap in the crude oil sales and declared receipts.

CBN Governor, Mr. Olayemi Cardoso, last week stated that 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.

Cardoso, who was delivering a keynote address at the launch of the Nigerian Economic Summit Group (NESG) “2024 Macroeconomic Outlook Report”, said, “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 opportunities for arbitrage.

“The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.”

“We are implementing a comprehensive strategy to improve liquidity in our FX 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.

“Upholding the integrity of financial markets is crucial for building confidence. With the completion of an independent forensic review, we are addressing the backlog of valid FX transactions and we remain steadfast in our commitment to decisively address any infractions and abuses,” he added.

Reacting, The Chief Whip of the Senate, Ali Ndume, commended the President’s directive to the Nigerian National Petroleum Company Limited (NNPC) to transfer revenue from crude oil sales to the Central Bank of Nigeria (CBN).

The Senator representing Borno South in the red chamber, said this in a chat with journalists in Abuja, on Tuesday.

The NNPC over the years had maintained sole control over crude oil sales, only rendering accounts to the federal government.

Ndume appealed to Tinubu to extend the initiative to all government agencies that generate revenues.

Some of them he listed included, the Nigeria Customs Service, the Nigeria Ports Limited, the Nigerian Maritime Administration and Safety Agency, among others.

Ndume, said the agencies must not be allowed to keep government funds in commercial banks without proper monitoring, as such would be safer in the coffers of the CBN.

He said, “The President has now ordered that all crude oil sales money should be paid into the CBN. That is a very welcome and positive thing that he has done and he should not stop there.

“All agencies of government that are revenue generating should pay their money into the consolidated revenue account.

“As they present their budget, whatever expenditure they are going to incur, let them bring it before the National Assembly. That’s what the constitution says. So, what they now want is to make a political issue again out of it.

“This decision that Mr. President took is the right decision, it is constitutional and it should be supported by everybody.

“That way, it should also apply to other agencies of government that are driving revenue. They cannot keep it. NIMASA should pay directly like NNPCL into the CRF.

“The Nigeria Ports Authority (NPA) should do the same. The Nigeria Customs Service and all other revenue agencies should pay revenues into the Consolidated Revenue Fund of the Federation and their accounts should remain with CBN because they can do banking.”

Speaking further, he said: “If they want to withdraw money, they should withdraw through the CBN. They were doing this before. Don’t go and keep people’s money in commercial banks and do transactions with it. That is it.

“I reiterate my call commending him for asking NNPCL to pay all oil revenue into the Consolidated Revenue account.”

The Senator reiterated his appeal to Tinubu to proclaim an Executive Order on Unexplained Wealth.

He said such a law would empower anti-graft agencies to go after Nigerians with questionable riches.

The Senator representing Borno South in the red chamber said if Tinubu was determined to tackle the menace of corruption, he must proclaim the Executive Order as soon as possible.

He said people, especially the political class, must explain their sources of wealth or forfeit the same to the government.

He added, “The next thing now, if President Tinubu wants to fight corruption, would be to sign an Executive Order on Unexplained Wealth in this country.

“Let all these people explain where they got their money, including myself. People should stop talking about trivialities or personal issues; they should talk about national issues.”