President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other emerging refineries in Naira, according to an announcement by Special Adviser to the President on Information and Strategy, Bayo Onanuga.
The directive, disclosed via Onanuga’s official X handle on Monday, aims to stabilize both the price of refined fuel and the Naira-Dollar exchange rate.
This decision was endorsed by the Federal Executive Council (FEC) during its meeting today.
Currently, Dangote Refinery requires 15 cargoes of crude oil annually, totaling $13.5 billion. NNPC has agreed to supply four of these cargoes.
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Under the new arrangement, the FEC has approved that 450,000 barrels of crude, designated for domestic consumption, be sold in Naira to Nigerian refineries, starting with Dangote as a pilot project.
The announcement detailed that the exchange rate for these transactions will be fixed for the duration of the deal.
Afreximbank and other Nigerian settlement banks will facilitate the trade between Dangote Refinery and NNPC Limited, eliminating the need for international letters of credit and reducing the country’s dollar expenditure.
