The Nigerian National Petroleum Company Ltd remitted $2.7 billion in six months, from January to June this year, into its accounts with the Central Bank of Nigeria, CBN, disputing claims that lack of contribution from it has led to the spiraling value of the naira.
The funds remitted comprise of $645 million for dividend paid by the Nigerian Liquefied Natural Gas Company Ltd, and $1.786 billion from the NNPC operational activities.
Further details showed that the NNPC Limited remitted $18.77 million in January 2022; $194. 56 million in February 2022; and $373. 233 million in March 2022.
Other NNPC remittances were $247.884 million in April 2022; $591.565 million in May 2022; and $880.906 million (June 2022).
This follows claims that zero remittance by the NNPC Limited is responsible for the acute scarcity of the dollar, leading to the sharp depreciation of the naira last month.
The naira depreciated by N3.95 to N429 per dollar at the end of July in the Investor and Exporters (I&E) window from N425 per dollar at the end of June. Similarly, the naira depreciated by N95 to N710 in the parallel market at the end of July from N615 per dollar at the end of June.
ICSAN commends NNPC transformation
Meanwhile, the Institute of Chartered Secretaries and Administrators of Nigeria, ICSAN, has commended the transformation of NNPC from a public corporation to a limited liability company, saying it will boost transparency and greater efficiency in the oil exploration and distribution system.
The President, ICSAN, Mr. Taiwo ’Gbenga Owokalade, FCIS, in a press statement said, “ICSAN sees the transition of NNPC from a public corporation into a limited liability company as a positive development for the Nigeria economy. The new entity, NNPCL is now a commercially-oriented national petroleum company with all the attributes of a thriving private enterprise.
“As a leading professional Institute on Corporate Governance and Public Administration, we applaud the vision behind this structural substitution of the NNPC with NNPCL, which is to ensure greater efficiency and transparency in the oil exploration and distribution system.
“We believe the new entity is more structurally poised and organically well-adjusted to provide a pivotal role for the sector.
“This transition to a private company will enable the company to be more value-driven and its operations more inclined to conform to international best practices.
“This is a very laudable development and we comment on it for the positive implications it portends for the energy sector and the nation’s economy in general.
Owokalade advised the management of the NNPCL to ensure that adequate corporate governance is entrenched in the new entity.
He said “We will however further advise that there must be an adequate framework of risk management and control system within the new entity, NNPCL.
“Furthermore, proper checks and balances must be built into the system to ensure effective operation and efficiency of the company is not at any time compromised.”
