NNPC Counters CBN on its Role in Naira Depreciation as Document Details its Dollar Remittance in Six Months

NNPC Counters CBN on its Role in Naira Depreciation as Document Details its Dollar Remittance in Six Months

  • The Nigerian National Petroleum Company Limited (NNPC) has detailed how much it remitted to the CBN account in six months
  • NNPC showed in its document how it paid millions of dollars in oil revenue to the CBN account
  • The explanation is coming amid an accusation from CBN that NNPC played a role in Naira depreciation against the US dollar

The Nigerian National Petroleum Company Limited (NNPC), has tackled the Central Bank of Nigeria (CBN) for blaming it for the continuous depreciation of the naira.

Legit.ng had earlier reported that the CBN accused the NNPC and its subsidiaries of causing the poor performance of the Naira due to its refusal to remit oil revenue in dollars.

The CBN argued the action is the main reason Nigeria suffers from an acute foreign currency shortage.

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NNPC tackles CBN on Naira, dollar
CBN governor, Godwin Emefiele Credit: tomsket
Source: Getty Images

Part of the CBN report reads:

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“Considering Nigeria’s heavy dependence on oil exports for foreign exchange earnings and government revenue, the impact of the oil market crash severely affected the government’s naira revenue and other macroeconomic aggregates, including economic growth.
“Hence, the exchange rate between the naira and other currencies has widened over the past few years."

Breakdown of NNPC remittance to CBN

However, a document that tackles the claim from NNPC indicated that the state-owned oil and gas firm remitted a total of N2.7 billion into its accounts with the Central Bank from January to June this year.

According to a Guardian report, the NNPC document also stated that out of the $2.7 billion the oil firm remitted into its CBN accounts, $645 million was for dividends paid by the Nigerian Liquefied Natural Gas company Limited (NLNG).

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It added that $1.786 billion was from the operational activities of the national oil company, which recently transited into a limited liability company.

The document shows that the funds remitted by NNPC to CBN since the year 2022 started include -$18,770,418.97 in January; $194563, 276.49 in February; and $373,232,875.20 in March.

Others were $247,884,295.52 remitted in April 2022: $591,565,425.41 in May; and $880,906,761.81 in June 2022.

CBN preaches hope as Naira fall to its lowest level in history to US dollars

Meanwhile, the Central Bank of Nigeria has assured Nigerians that the current Naira depreciation will soon be over.

The assurance is coming from Michael Adebayo Adebiyi, CBN’s director, the research department at the Chartered Institute of Bankers of Nigeria (CIBN).

He gave various reasons why Nigerians should be hopeful in the coming months while listing policies in place.

Source: Legit.ng

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