President Bola Ahmed Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other upcoming refineries in Naira.
This directive, aimed at stabilizing the pump price of refined fuel and the Dollar-Naira exchange rate, was disclosed by the Special Adviser to the President on Information and Publicity, Bayo Onanuga, via his official X handle on Monday.
Onanuga stated, “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.”
He further detailed that the Dangote Refinery currently requires 15 cargoes of crude annually, amounting to $13.5 billion. “NNPC has committed to supply four cargoes,” he added.
However, the Federal Executive Council (FEC) has decided that the 450,000 barrels allocated for domestic consumption will be sold in Naira to Nigerian refineries, with Dangote Refinery serving as the pilot.
“The exchange rate will be fixed for the duration of this transaction,” Onanuga noted, explaining that this approach is designed to minimize the impact of foreign exchange fluctuations on the pricing of refined fuel.
Additionally, Onanuga revealed that the trade between Dangote and NNPC Limited would be facilitated by Afreximbank and other settlement banks in Nigeria.
He emphasized that this “game-changing intervention will eliminate the need for international letters of credit and save the country billions of dollars used in importing refined fuel.”
This move is expected to significantly impact the country’s oil sector, particularly in reducing the dependence on imported refined petroleum products and stabilizing the nation’s currency.
