NNPC Faces Liquidity Issues After Tinubu's Revenue Order
Analysts have raised concerns about the liquidity of the Nigerian National Petroleum Company Limited (NNPCL) following President Bola Tinubu's executive order signed on February 18, which mandates the direct remittance of oil and gas revenue to the federal account. This order significantly affects the liquidity and operational flexibility of NNPCL, as it strips the company of certain revenue retention mechanisms, potentially weakening its ability to meet financial obligations to vendors and investors.
Yusuf warned that this could disrupt operations and lead to budgetary issues. Dr. Joseph Obel, an energy expert, noted that the executive order could discourage long-term capital investment and lead to workforce reductions as part of cost-cutting measures.
The order aims to enhance fiscal transparency and curb revenue leakages amid declining inflows to the federal account, despite concerns from stakeholders about its implications for the oil and gas industry.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
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