President Bola Tinubu, on Monday, issued an executive order directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other domestic refineries in naira rather than dollars.
The decision, announced by Bayo Onanuga, Special Adviser to the President on Information and Publicity, aims to both stabilize fuel prices and improve the naira-dollar exchange rate.
This directive, endorsed by the Federal Executive Council, emerged from a recent meeting between President Tinubu and business magnate Aliko Dangote. The meeting, orchestrated by Gilbert Chagoury—a prominent Lebanese ally of Tinubu—sought to address and resolve ongoing tensions between Dangote and the government.
Under the new order, refined products from these local refineries will be sold to marketers in naira, targeting a reduction in the economic strain caused by high energy costs linked to petroleum imports. This decision also comes in light of Nigeria’s aging and underused refineries, which have been struggling to meet domestic demand.
Sources indicate that Dangote’s relationship with the administration had become strained, partially due to his failure to provide financial backing for Tinubu’s 2023 election campaign. To mend this rift, Dangote enlisted the help of Chagoury, a well-connected figure known for his close relationship with Tinubu.
Chagoury, a significant force within Tinubu’s circle, has been instrumental in various high-profile deals. Notably, Tinubu awarded a major infrastructure project, the $11 billion Lagos-Calabar coastal highway, to Hitech Construction Company, which is associated with Chagoury.
