President Bola Tinubu Monday ordered the Nigerian National Petroleum Company Limited (NNPCL) to allow the Dangote Refinery to buy crude oil in naira.
This was disclosed by Bayo Onanuga who is President Tinubu adviser on information and strategy via his official X page.
“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,” Onanuga stated.
“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 a 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 billions of dollars used in importing refined fuel.”
The Dangote Refinery and the NNPC had been on loggerheads over the supply of crude oil. Aliko Dangote accused the NNPC and its down stream agency of sabotage, while the NNPC stated that the billionaire was trying to monopolise petroleum products distribution in Nigeria.
