CBN debunks claims over oil revenue in letter addressed to Presidency

December 12, 2013

The Central Bank of Nigeria (CBN) has issued a statement concerning a letter supposedly written and addressed to the Presidency by its Governor, Sanusi Lamido Sanusi, over the non-remittance of oil revenues by the Nigerian National Petroluem Corporation(NNPC).

In a statement released on Thursday in Abuja, the bank’s governing body said it would neither confirm nor deny the existence of such a letter, but made its stance clear on the issue, which had already been gathering momentum in the public space.

The CBN said, “The capacity of the bank to perform its role effectively is strengthened or undermined by the extent to which the nation is able to increase foreign exchange earnings and savings from these earnings, thus boosting the Excess Crude Savings Account, raising reserve levels, providing currency stability and..

moderating interest rates with limited risks to inflation and financial stability.”

The statement read that it was natural for the CBN to be concerned with the low level of accretion to reserves and the Excess Crude Account, in spite of strong international oil prices. A concern it said is shared by the President, Ministry of Finance, Ministers, State Governors, legislators, economists and all stakeholders involved in managing the economy.

It also said that it welcomed the initiatives to set up a technical team made to examine the sources of any revenue leakages and propose appropriate fiscal controls, a team which is to be overseen by representatives of the Federal Ministry of Finance, the NNPC and the CBN.

“The Central Bank of Nigeria recognises that there is an urgent need to review fiscal terms of sharing revenues between the Federal Government and oil companies and to improve governance and transparency in the official oil sector. This underscores the need to urgently pass a Petroleum Industry Bill (PIB) that addresses fiscal terms and the structure of the NNPC.

“We therefore support the effort of the Federal Government to pass a new PIB,” the statement added.

The CBN assured stakeholders of continued support in its efforts towards strengthening the Nigerian economy. It called on the public to avoid politicising the issue.

“The Central Bank of Nigeria will not issue further statements on this matter and urges the general public to avoid unnecessary politicization of a technical matter while awaiting the outcome of on-going consultation and reviews,” the statement concluded.