In a significant policy shift, President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil in Naira to Dangote Refinery and other upcoming refineries.
This directive aims to stabilize the pump price of refined fuel and the dollar-Naira exchange rate.
Bayo Onanuga, the Special Adviser to the President on Information and Strategy, announced this decision via his official X handle on Monday. He noted that the Federal Executive Council adopted this move today to ensure economic stability.
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Dangote Refinery currently requires 15 cargoes of crude, costing $13.5 billion annually. NNPC has pledged to supply four of these cargoes. The Federal Executive Council has approved that the 450,000 barrels intended for domestic consumption be offered in Naira to Nigerian refineries, starting with Dangote Refinery as a pilot project.
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The statement highlighted that the exchange rate will be fixed for the duration of this transaction. Afreximbank and other settlement banks in Nigeria will facilitate trade between Dangote and NNPC Limited. This intervention is expected to eliminate the need for international letters of credit, thereby saving the country from dollar payments.