Abuja – Nigeria – The President of the Federal Republic of Nigeria, Bola Tinubu has ordered the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other upcoming refineries in naira and not not in United States greenback. The move is aimed the move to ensure the stability of the pump price of petrol, diesel and other products, as well as the dollar-naira exchange rate.
The Chairman, Federal Inland Revenue Service (FIRS) Zack Adedeji who revealed this after a Federal Executive Council (FEC) meeting chaired by President Tinubu in Abuja on Monday, stated that FEC ordered the NNPCL to immediately begin the full implementation of the directive to boost local production of refined petroleum products in Nigeria.
Adedeji also said that the Tinubu led administration has mandated that the sale of refined products from Dangote Refinery to oil marketers and distributors be denominated in naira instead of US dollars.
Currently, Dangote Refinery requires 15 cargoes of crude, costing $13.5 billion annually. NNPCL has committed to supplying four cargoes. However, the FEC has approved that the 450,000 barrels intended for domestic consumption be offered in naira to Nigerian refineries, with the Dangote refinery serving as a pilot.
The Special Adviser to the President Tinubu on Information and Strategy, Bayo Onanug via his official X handle on Monday said the exchange rate will be fixed for the duration of this transaction.
Shedding light on the transaction, Onanuga added that Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPCL. According to him this intervention will eliminate the need for international letters of credit, further saving Nigeria of dollar payments.
