Economy
Decision to Move Accounts to CBN Won’t Hinder Operations—NNPC
By Adedapo Adesanya
The Nigerian National Petroleum Company (NNPC) Limited has said the latest decision to move a substantial part of its accounts to the Central Bank of Nigeria (CBN) won’t create any hindrances to its operations.
Speaking when the CBN Governor, Mr Olayemi Cardoso visited him in his office, the NNPC’s Group Chief Executive Officer, Mr Mele Kyari, said contrary to beliefs, the national oil company was not compelled by political actors to take the decision.
Many Nigerians, including former Vice President, Mr Atiku Abubakar, had recently raised issues as to the propriety of ‘compelling’ the NNPC to compulsorily move its accounts to the CBN by the Bola Tinubu-led administration.
Mr Kyari stated that part of the reason was to maintain a “safe obligor limit” with the commercial banks.
The NNPC is the largest company in Nigeria and Mr Kyari said that since the firm maintains very high liquidity and transaction levels, it was important to work closely with the apex bank.
He lauded the CBN for creating a special department solely to ensure that the newfound relationship is seamless, explaining that it is ultimately in the interest of the NNPC and the nation at large.
“We made that decision in line with the directives of our board of directors to maintain safe obligor limits with commercial banks.
“For us to do this, we do need additional support from the central bank to achieve this. We are a very huge company and our transactions and liquidity levels are very high and perhaps, we are the largest business in this country.
“We are also happy that the CBN has created a very robust digital platform for our transactions and also, created a department that will deal with NNPC issues, and thus this will create no hindrance to our operations.
“We will continue to collaborate with the CBN to ensure that further improvements are recorded and to ensure that this relationship will serve the best interest of our company and our country in general,” he stated.
On his part, Mr Cardoso confirmed that to ensure seamless operations, a new platform has been created, expressing confidence that the new collaboration will work in the interest of the country.
“We have come to this particular stage where the NNPC has decided to move a respectable part of its business to the Central Bank of Nigeria. I also want to say that we have restructured and strengthened internal processes such that we are very capable of taking on this enormous responsibility that will be placed on the central bank.
“We are looking forward to further collaboration with the 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,” he said.
According to a joint statement by the spokespersons of the NNPC, Mr Olufemi Soneye, and the CBN, Mrs Hakama Sidi Ali, the duo noted that there now exists an improved platform for managing NNPC’s cash holding obligor limits in commercial banks set by the board of directors.
“The GCEO NNPC Ltd., Mallam Mele Kyari, and the Governor of the CBN, Mr. Olayemi Cardoso, have reviewed the decision of the NNPC Ltd. to domicile a significant portion of its revenues and other banking services with the CBN.
“Following their meeting in Abuja on Thursday, February 8, 2024, 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.
“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,” the statement seen by Business Post added.
By Dipo Olowookere
The price of crude oil on the global market dropped below the $90 per barrel mark on Friday after Iran announced the reopening of the Strait of Hormuz.
About 20 per cent of the world’s total oil and liquefied natural gas (LNG) consumption passes through this narrow body of water between Iran and Oman.
It was shut down by Iran after the United States and Israel launched airstrikes on it in late February 2026.
For the past few days, there have been talks between the US and Iran over the reopening of the Strait. The Middle East country reopened it after Israel and Lebanon struck a deal.
This action crashed the price of crude oil today, with the Brent grade selling at about $88 per barrel and the West Texas Intermediate (WTI) grade trading at $83 per barrel as of the time of filing this report.
Iranian Foreign Minister, Mr Abbas Araghchi, announced the reopening of the Strait of Hormuz, with the move already welcomed by President Donald Trump of the United States.
It will remain open during the ceasefire while further negotiations continue between America and Iran.
“In line with the ceasefire in Lebanon, the passage for all commercial vessels through the Strait of Hormuz is declared completely open for the remaining period of the ceasefire, on the coordinated route as already announced by Ports and Maritime Organisation of the Islamic Republic of Iran,” the Minister posted on X, formerly Twitter, on Friday.
This news will surely excite Nigerians, who have been forced to pay more to buy petroleum products since the war started, despite living in an oil-producing country.
The price of petrol jumped from about N827 per litre before the war to N1,250 and almost N1,300 per litre because of the Middle East crisis.
Dangote Refinery, which majorly supplies the local market, claimed it was buying crude oil at an international price.
By Adedapo Adesanya
President Bola Tinubu has signed the 2026 Appropriation Bill into law, authorising an aggregate expenditure of N68.32 trillion for the current fiscal year.
He also signed a separate bill extending the implementation period of the 2025 budget from March 31 to June 30, 2026.
The budget allocates N4.799 trillion for statutory transfers and N15.8 trillion for debt service.
It further sets aside N15.4 trillion for recurrent expenditure and N32.2 trillion for capital expenditure through the Development Fund.
In a statement signed by Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, on Friday, it was that, “The N68.32 trillion budget for this year earmarks N4.799 trillion for statutory transfers and N15.8 trillion for debt service. It allocates N15.4 trillion to recurrent expenditure and N32.2 trillion to the Development Fund for Capital Expenditure.”
“With capital expenditure accounting for about 50 per cent, the 2026 budget underscores the administration’s continued commitment to economic stability, national security, infrastructure development, and inclusive growth.
“The allocations reflect a strategic balance between statutory obligations, debt servicing, recurrent expenditure, and capital investments critical to driving productivity and improving the quality of life for Nigerians,” it added.
The 2026 Appropriation Act took effect on April 1, with the federal government commencing full implementation in line with what the presidency describes as the Renewed Hope Agenda.
President Tinubu also assented to the Appropriation (Repeal and Enactment) (Amendment) Bill, 2026, which extends the capital component of the 2025 Appropriation Act by three months to June 30.
The presidency said the extension would ensure the full utilisation of appropriated funds, particularly for critical infrastructure projects at advanced stages of implementation.
“The extension will ensure the full and effective utilisation of appropriated funds, particularly for critical infrastructure and development projects that are at advanced stages of implementation across the country.
“It will enable Ministries, Departments, and Agencies (MDAs) to consolidate ongoing works, enhance project completion rates, and maximise value for public expenditure,” the statement read.
He directed MDAs to ensure disciplined, transparent, and efficient utilisation of allocated resources, with strong emphasis on value for money and timely project delivery.
The President reaffirmed the importance of sustained collaboration between the Executive and Legislative arms of government in advancing national development objectives, the statement noted.
President Tinubu also assured Nigerians of his administration’s resolve to deepen fiscal reforms and boost revenue generation.
By Adedapo Adesanya
Pipeline Infrastructure Nigeria Limited (PINL) says Nigeria has lost an estimated $226.734 billion in revenue from stalled crude oil production in Ogoniland over the past 32 years.
The group at the company’s monthly stakeholders’ meeting in Port Harcourt called for an urgent, structured restart of operations in the region.
PINL described the resumption of oil production in Ogoniland as a “strategic national priority,” stressing that the process must be driven by host communities and grounded in environmental sustainability.
Speaking at the event, Mr Akpos Mezeh, General Manager, Community and Stakeholder Relations at PINL, said the scale of losses highlights both the cost of inaction and the opportunity ahead.
“Available data shows that over $226.734 billion has been lost due to the suspension of crude oil production from 96 oil wells in Ogoniland over the past 32 years. This clearly underscores both the economic cost of inaction and the immense opportunity that lies ahead,” he said.
Ogoniland, covered under Oil Mining Lease (OML) 11, has the capacity to produce over 500,000 barrels of crude oil per day. Production was halted in 1993 following unrest and environmental concerns linked to oil exploration activities.
PINL outlined key conditions for restarting operations, including active community participation, sustained environmental remediation, adoption of community-based security models, and prioritisation of economic inclusion.
“The position of PINL aligns with growing calls from stakeholders in the Niger Delta for the Federal Government to restart oil production in Ogoniland in a manner that balances economic benefits with environmental justice and community interests,” Mr Mezeh added.
He further affirmed the company’s readiness to support the process, stating: “At PINL, we stand ready to support this process by applying our experience in stakeholder engagement and infrastructure protection to ensure a peaceful, secure, and sustainable resumption.”
PINL maintained that with the right framework, resuming production in Ogoniland could significantly boost Nigeria’s crude output, increase government revenues, and support broader economic growth.
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