President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited to sell crude oil to Dangote Refinery and other new refineries in Naira.
Bayo Onanuga, the Special Adviser to the President on Information and Strategy, announced this on his official X account on Monday. Onanuga explained that this initiative aims to stabilize the pump price of refined fuel and manage the dollar-Naira exchange rate, and it was approved by the Federal Executive Council today.
According to PUNCH Online, Dangote Refinery currently needs 15 cargoes of crude oil, costing $13.5 billion annually. NNPC has pledged to supply four of those cargoes. The FEC has authorized that the 450,000 barrels designated for domestic use be sold in Naira to Nigerian refineries, starting with Dangote as a test case.
The announcement also noted, “The exchange rate will be set for the duration of this transaction.” Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. This transformative measure will eliminate the need for international letters of credit, resulting in savings on dollar payments for the country.
