President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other upcoming refineries in Naira.
This directive aims to stabilize the pump price of refined fuel and the dollar-Naira exchange rate.
Bayo Onanuga, the Special Adviser to the President on Information and Publicity, announced the decision via his official X handle on Monday. He noted that the Federal Executive Council (FEC) adopted this policy during its latest meeting.
According to sources, Dangote Refinery currently requires 15 cargoes of crude annually, costing $13.5 billion. The NNPC has already committed to supplying four cargoes.
The FEC has now approved that the 450,000 barrels designated for domestic consumption be offered in Naira to Nigerian refineries, starting with the Dangote refinery as a pilot project.
Afreximbank, in collaboration with other Nigerian settlement banks, will facilitate the trade transaction between Dangote and NNPC Limited, with a fixed exchange rate applicable throughout the duration of the deal.
This intervention is expected to eliminate the need for international letters of credit, thereby saving the country from significant dollar payments.
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