President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to the Dangote Refinery and other upcoming refineries in Naira. This directive was issued during the Federal Executive Council (FEC) meeting on Monday.
Bayo Onanuga, the Special Adviser to President Tinubu on Information and Strategy, announced this development in a statement on X. According to Onanuga, the decision aims to stabilize the pump price of refined fuel and the dollar-Naira exchange rate.
The statement read, “To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira.
“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.
“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as pilot. The exchange rate will be fixed for the duration of this transaction.
“Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game changing intervention will eliminate the need for international letter of credit, further saving the country of dollar payments.”
This initiative is expected to have a significant impact on Nigeria’s economy by reducing the need for dollar transactions and supporting the local currency.
