In a groundbreaking move, President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other upcoming refineries in Naira, a decision aimed at stabilizing the pump price of refined fuel and the dollar-Naira exchange rate.
This directive, issued during the Federal Executive Council meeting on Monday, marks a significant shift in Nigeria’s oil industry, as reported by Special Adviser to President Tinubu on Information and Strategy, Bayo Onanuga.
The Dangote Refinery, which requires 15 cargoes of crude yearly, will benefit from this directive, with NNPC committing to supply four cargoes.
The Federal Executive Council has approved the sale of 450,000 barrels meant for domestic consumption in Naira to Nigerian refineries, using the Dangote refinery as a pilot.
This innovative approach will eliminate the need for international letters of credit, saving the country from dollar payments, and Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited.
