President Tinubu has ordered the Nigerian National Petroleum Company Limited, NNPCL, to sell crude oil to Dangote Refinery in Nigeria currency, Naira.
The presidential media aide to Bola Tinubu, Mr Bayo Onanuga made the statement in his official X account on Monday.
He said to ensure the stability of 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
The Dangote Refinery at the present requires 15 cargoes of crude oil for $13.5 billion yearly. of which the Nigeria National Petroleum Company Limited (NNPCL) has committed to supply four.
“But the Federal executive council (FEC) has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a 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 letters of credit.
The FEC says this will also save the country billions of dollars used in importing refined fuel and strengthen domestic refining capacity. It will contribute to improved energy security and reduce the cost of refined petroleum products for consumers.
Supplying crude oil to Dangote refinary and other upcoming local refineries swill bolster local industrial capabilities and creating job opportunities, which are critical for our economic expansion and diversification.
The Dangote refinary and NNPCL, Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and other regulators in Nigeria’s oil and gas sector of recent engage in words of battle over the supply issues of 650,000 per day to Dangote refinary
