The Nigerian National Petroleum Company Ltd (NNPCL) has debunked recent claim.by the Central Bank of Nigeria (CBN) that the crash of the value of the Naira was caused by its (NNPCL’s) non-remittance of funds into Nigeria’s foreign reserve.
The NNPCL has provided details of its remittances totalling N2.7 billion into its accounts with the CBN from January to June this year.
The CBN, which had been under fire following the continued depreciation of the naira, had blamed the non-remittance of dollars by the NNPCL for the forex crisis.
In a report entitled “The forex question in Nigeria: Fact sheet,” the CBN said there had been “zero-dollar remittance to the country’s foreign reserve by the NNPC.”
It was revealed that the NNPC remitted $2.7billion into its CBN accounts in the first six months of this year, 2022.
Available records showed that out of the $2.7 billion the NNPC remitted into its CBN accounts, $645million was for dividend paid by the Nigerian Liquefied Natural Gas Company Ltd, while $1.786 billion was from the NNPC operational activities.
Acccording to a breakdown of the NNPC remittances, funds into the NNPC accounts came as follows: $18,770,418.97 (January 2022), $194, 563, 276. 49 (February 2022) and $373, 232,875.20 (March 2022).
Other remittances were made in this order: $247,884,295.52 (April 2022), $591, 565, 425. 41 (May 2022) and $880, 906, 761.81 (June 2022).
Last week, the Senate resolved to invite the CBN governor, Godwin Emefiele to explain the continued weakening of the value of the naira and what he is doing to address the problem.
The upper legislative chamber took the decision
Following a motion sponsored by Senator Olubunmi Adetunmbi.
The Senate also mandated its Committee on Banking, Insurance and Other Financial Institutions to critically look into the intervention funds CBN earmarked to support some sectors of the economy.
In his motion seeking Emefiele’s summoning, Adetumbi insisted the CBN’s earlier ban of forex sales to BDC operators caused a spike in exchange rate.
He stated that a few people benefit from the import-export window meant to serve the forex needs of business enterprises.
According to him even the Personal Travel Allowance (PTA) and Business Travel Allowance (BTA) are not accessible as less than 20 per cent of the total forex demand by travellers and businesses is met by CBN.
The Nigerian Tribune reports that in 2018, Emefiele blamed forex crisis on the importation of items he said should have been manufactured in Nigeria, leading to the ban of Forex allocation for 41 items.
In 2021, Emefiele shifted the blame on Bureau De Change (BDC) operators, who he accused of illegal forex trading.
He pointed fingers at “Aboki FX,” saying its activities were responsible for the naira depreciation, thereby cutting allocation to BDC.
This year, the CBN has blamed the forex crisis on money laundering and activities of those allegedly funding terrorism as well as politicians.
Meanwhile, in its efforts to boost inflows of foreign exchange amidst rising demand for both goods and services by Nigerians, the Central Bank of Nigeria (CBN) has said that in the first and second quarters of 2022, it raked in about $600 million as at June 2022 through the RT200 FX Programme.
This was disclosed by the Director, Corporate Communications at the CBN, Mr Osita Nwanisobi, who reiterated that the CBN remained committed to resolving the foreign exchange issues confronting the nation and, as such, has been working to manage both the demand and supply side challenges.
Speaking on the issue in Abuja over the weekend, he said “the Bank’s records showed that foreign exchange inflow through the RT200 FX Programme in the first and second quarters of 2022 increased significantly to about $600 million as at June 2022.”
While admitting that there was huge demand pressure for foreign exchange to meet the needs of manufacturers as well as those for the payment of tuition, medical fees and other invisibles, Nwanisobi said the Bank was concerned about the international value of the naira, adding that the monetary authority was strategising to help Nigeria earn more stable and sustainable inflows of foreign exchange in the face of dwindling inflows from the oil sector.
Specifically, he noted that recent initiatives undertaken by the Bank such as the RT200 FX Programme and the Naira4Dollar rebate scheme had helped to increase foreign exchange inflow to the country.
Similarly, he disclosed that the Naira4Dollar incentive also increased the volume of Diaspora remittances during the first half of the year.
Continuing, he said interventions such as 100 for 100 Policy on Production and Productivity, Anchor Borrowers’ Programme (ABP) and the Non-Oil Export Stimulation Facility (NESF), among others, were also geared towards diversifying the economy, enhancing inflow of foreign exchange, stimulating production and reducing foreign exchange demand pressure.
Nwanisobi, therefore said that the Bank would continue to make deliberate effort in the foreign exchange sector to avert further downward slide in the value of the naira, which he observed is fueled by speculative tendencies.
Reiterating an earlier position of the CBN Governor, Mr Godwin Emefiele, he urged Nigerians to play their role by adjusting their consumption patterns, looking inwards and finding innovative solutions to the country’s challenges.
He submitted that monetary policy alone could not bear all the burden of the expected adjustments needed to manage the challenges around Nigeria’s foreign exchange and admonished that “It’s our collective duty as Nigerians to shore up the value of the Naira.”
Nwanisobi advised Nigerians not to succumb to speculative activities of some players in the foreign exchange market.