President Bola Tinubu has mandated the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other emerging refineries in Naira. This directive aims to stabilize both the pump price of refined fuel and the exchange rate between the dollar and the Naira.
The Special Adviser to the President on Information and Publicity, Bayo Onanuga, announced the decision through his official X handle on Monday. The Federal Executive Council (FEC) adopted this measure during its meeting today.
According to PUNCH Online, Dangote Refinery currently requires 15 cargoes of crude annually, costing $13.5 billion. NNPC has pledged to supply four of these cargoes. The FEC has approved offering the 450,000 barrels designated for domestic consumption to Nigerian refineries in Naira, with the Dangote Refinery serving as the pilot.
The statement further detailed that the exchange rate for this transaction would be fixed for its duration. Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. This initiative is expected to eliminate the need for international letters of credit, thereby saving the country from making dollar payments.