President Bola Ahmed Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery in Naira, according to a statement by Bayo Onanuga, Special Adviser to the President on Information and Publicity.
“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,” Onanuga announced on Monday.
The move aims to reduce reliance on foreign currency and stabilize fuel prices. Onanuga explained, “Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.”
The Federal Executive Council approved the sale of 450,000 barrels of crude meant for domestic consumption to Nigerian refineries, using the Dangote refinery as a pilot. The exchange rate will be fixed for the duration of the transaction.
Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. Onanuga hailed the move as a “game-changing intervention” that will “eliminate the need for international letters of credit” and “save the country billions of dollars used in importing refined fuel.”