Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


CBN wants government to monitor utilisation of domestic crude

06 February 2014, 15:02

Abuja - The Central Bank of Nigeria (CBN) has urged the federal government to monitor the utilisation of crude oil being managed by the Nigerian National Petroleum Corporation (NNPC) for domestic consumption.

The CBN expressed concern over the propriety of NNPC’s handling of 440 000 barrels of crude it collected daily for refining.

It suggested that the corporation should be made to collect only the quantity of crude that it had the capacity to refine.

“The amount of crude collected by NNPC should be reduced to the refining capacity of its refineries based on a signed refining contract that clearly states what products are to be delivered for each barrel taken,” it stated.

The CBN said that proceeds from sale of the products “net of recognised processing costs” should be paid into the Federation Account.

It added that “all crude for products swaps should be terminated and crude should be exported and sold at market price."

The CBN also suggested that where NNPC needed to generate cash to fund importation of petrol, it could borrow crude on the approval of the finance minister for 90 to 120 days.

“This crude is to be valued at the ruling price. NNPC may sell the crude, import PMS (petrol) and sell through its outlets.

“It should claim subsidy from Petroleum Products Pricing Regulatory Agency (PPPRA) like every other marketer and present all required documents.

“Thereafter, NNPC should pay back the full value of crude lifted to the Federation Accounts and retain the profit.

“When NNPC delays payment, the amount outstanding should attract interest at commercial rates until payment,’’ it said.

The bank called for the investigation of all Strategic Alliance Agreements (SAAs) entered into by Nigerian Petroleum Development Company (NPDC) “for constitutionality”.

“The production numbers, Opex and Capex, and profit shares should be audited,” it said, adding that tax arrangements entered into with the parties should be reviewed and all revenues due to the federation should be collected.

-    NAN


Read News24’s Comments Policy

Comment on this story
1 comment
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...