In a move set to provide significant economic relief, President Bola Tinubu has directed the Nigerian National Petroleum Corporation (NNPC) to sell crude oil to the Dangote Refinery in Naira.
The Special Adviser to the President on Information and Publicity, Bayo Onanuga, disclosed this in a post via his official X handle on Monday.
According to him: “To ensure the stability of the 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.
“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.
“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as 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. It will also save the country of billions of dollars used in importing refined fuel”.
This decision aims to bolster the local economy and support Nigeria’s largest private-sector investment.
The directive, which has been met with widespread approval, is expected to ease the pressure on foreign exchange reserves and stabilize the Naira. By enabling transactions in the local currency, it will reduce the demand for dollars, which has been a major strain on the economy.
The Dangote Refinery, poised to be one of the largest in the world, is a critical project for Nigeria’s energy independence and economic growth. With an expected refining capacity of 650,000 barrels per day, it is set to meet the nation’s fuel needs and reduce dependency on imported petroleum products.
President Bola Ahmed Tinubu, has directed the Nigerian National Petroleum Company Limited, NNPCL, to sell crude to Dangote Refinery in Naira.
