National Telescope national telescope newspaper
By Taiwo Niyi, KWARA |
President Bola Ahmed Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery in Naira.
This decision, aimed at stabilising the pump price of refined fuel and maintaining the Dollar-Naira exchange rate, was announced by the Special Adviser to the President on Information and Publicity, Bayo Onanuga, via his official X handle on Monday.
Onanuga explained that the Federal Executive Council (FEC) approved President Tinubu’s proposal to sell crude to Dangote Refinery and other emerging refineries in Naira.
Dangote Refinery, which currently requires 15 cargoes of crude oil at an annual cost of $13.5 billion, will receive four cargoes from NNPC.
The FEC has also authorised the allocation of 450,000 barrels meant for domestic consumption to Nigerian refineries, with the Dangote Refinery serving as a pilot.
A fixed exchange rate will be applied for the transaction duration.
Additionally, Afreximbank and other Nigerian settlement banks will facilitate the transaction between Dangote and NNPC Limited, eliminating the need for international letters of credit and saving the country billions of dollars previously spent on importing refined fuel.
This strategic move is expected to support the local economy by reducing the strain on foreign exchange reserves and ensuring that the supply of refined fuel meets domestic demand.
By conducting transactions in Naira, the government aims to stabilise fuel prices and mitigate the impact of fluctuating exchange rates on the economy.
The decision to sell crude oil in Naira is part of a broader effort to strengthen Nigeria’s economic stability and promote the development of the local refining sector.
