President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other upcoming refineries in the local currency,Naira.
The announcement was made by Bayo Onanuga, the Special Adviser to the President on Information and Publicity, on Monday.
The decision, approved by the Federal Executive Council (FEC), is aimed at stabilizing the pump price of refined fuel and the dollar-Naira exchange rate.
Currently, Dangote Refinery requires 15 cargoes of crude oil annually, with a cost of $13.5 billion. NNPC has committed to supplying four cargoes.
The FEC has given the go-ahead for the 450,000 barrels designated for domestic consumption to be sold in Naira to Nigerian refineries, starting with Dangote Refinery.
“The exchange rate will be fixed for the duration of this transaction,” the statement added. “Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. This intervention will eliminate the need for international letters of credit, further saving the country from dollar payments.”
