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President Bola Tinubu has directed the Nigerian National Petroleum Company Limited to sell crude to Dangote Refinery and other upcoming refineries in naira.
Bayo Onanuga, the Special Adviser to the President on Information and Publicity, announced the development in a post via his official X handle on Monday, July 29, 2024.
According to him, the move is to ensure the stability of the pump price of refined fuel.
He said, “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.”
He explained that Dangote Refinery at the moment requires 15 cargoes of crude, at $13.5 billion yearly, and the NNPCL has committed to supply four.
He said the Federal Executive Council 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 of billions of dollars used in importing refined fuel, he said.
Otedola recently urged FG to support Dangote
This is coming days after Nigerian billionaire, Femi Otedola, sought the Federal Government's support for Aliko Dangote and other local investors in Nigeria amid the dispute between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The head of the agency, Farouk Ahmed, had recently accused Dangote Refinery of producing fuel with high sulfur levels.
Ahmed also accused Dangote of plotting to monopolise the oil industry, adding that the alleged move could threaten the country’s energy sector.