President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other emerging refineries in the local currency, Naira. This directive aims to stabilize the price of refined fuel at the pump and manage the exchange rate between the dollar and the Naira.
Bayo Onanuga, the Special Adviser to the President on Information and Strategy, announced the decision on his official X handle. He revealed that this significant move was approved by the Federal Executive Council (FEC) earlier today.
Currently, Dangote Refinery requires 15 cargoes of crude oil annually, costing approximately $13.5 billion. The NNPC has committed to supplying four of these cargoes. The FEC has now approved that the 450,000 barrels intended for domestic consumption will be sold to Nigerian refineries in Naira, starting with Dangote Refinery as the initial trial.
Onanuga stated, “The exchange rate will be fixed for the duration of this transaction.” This measure will also involve the African Export-Import Bank (Afreximbank) and other Nigerian settlement banks to facilitate the trade between Dangote and NNPC Limited. This strategic intervention aims to eliminate the need for international letters of credit, thereby saving the country from dollar payments.
