NNPC Not Increasing Petrol Pump Price – Official

The Nigerian National Petroleum Company (NNPC) Ltd, has assured the public that there is no imminent increase in the pump price of Premium Motor Spirit (PMS), commonly known as petrol.

The company therefore urged Nigerians to disregard unfounded rumours and assured them that there are no plans for an upward review of the PMS price.

This is as the national oil company explained its decision to move a significant portion of its revenue to the Central Bank of Nigeria (CBN), saying it was in alignment with directives of the board of directors to maintain safe obligor limits with commercial banks.

“Motorists nationwide are advised against engaging in panic buying, as there is presently ample availability of PMS across the country, chief corporate communications officer of the company, Olufemi O. Soneye, said in a statement.

The group managing director of NNPC Ltd, Mele Kyari, stated this in a meeting with the senior management team of the CBN, led by governor of the apex bank, Olayemi Cardoso.

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He explained that the company, which is the largest company in the country, has a high transaction liquidity level, adding that the apex bank has created a digital platform for its transactions going forward.

He said, “We understand very clearly that this review of our decision to move a significant portion of our revenues to the Central Bank of Nigeria is very timely. We made that decision to align with the directives of our board of directors to maintain safe obligor limits with commercial banks.

“We do need additional support particularly from the central bank. We are a very huge company, our transaction liquidity levels are very high. And perhaps we’re the largest business in this country. And we’re also happy that this CBN has created a very robust digital platform for transactions and also created a department that will deal with NNPC issues and it will have non hindrance to our operation.

“We will continue to collaborate with the Central Bank of Nigeria to ensure that further improvements are received to ensure that this relationship serves the best interests of our company. And of course, ultimately, our country.”

In his remarks, Olayemi Cardoso, the governor of CBN said, “the NNPC has made the decision to move its respectable part of its business to the Central Bank of Nigeria. And I also want to say that we have restructured and strengthened internal processes such that we will be very capable of taking on this enormous responsibility that will be placed within the central bank.

“We are looking forward to further collaboration with NNPC. And I have absolutely no doubt in my mind that this effective collaboration will work in the best interests of NNPC and Nigeria in general.”

Following their meeting in Abuja on Thursday, the NNPC Ltd. and CBN Chiefs noted the value created by the decision for all parties, especially in providing the NNPC Ltd. with an improved platform for managing its cash holding obligor limits in commercial banks set by the Board of Directors.

A statement jointly signed by chief corporate communications officer, NNPC Ltd.Olufemi Soneye and acting director, Corporate Communications Department, CBN, Hakama Sidi Ali, both parties said the CBN has provided enhanced digital platforms for all transactions and has established specific limits to manage NNPC Ltd. transactions.

Both parties have also committed to further strengthening the collaboration to ensure seamless operations of the commercial NNPC Limited and noted that NNPC Ltd. continues to have banking transactions with commercial banks as required.