President Bola Tinubu Monday override the Nigerian National Petroleum Company Limited (NNPCL) on the currency to sell crude oil to local refineries.
Tinubu directed that the Government conglomerate to sell crude to Dangote Refinery and other upcoming refineries in Naira.
The special adviser to the president on information and publicity, Bayo Onanuga, disclosed this in a post via his official X handle on Monday, July 29.
Onanuga, who announced President Tinubu’s directive, stated that the move, which is to ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, was adopted by the Federal Executive Council today.
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.
“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.
“But the FEC 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 billions of dollars used in importing refined fuel.”
Only recently, Farouk Ahmed, Chief Executive Officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had sparked a fight in the industry by alleging that local refineries, including the Dangote refinery, produce inferior products compared to the ones imported into the country.
Dangote denied the allegation by testing diesel from his refinery on July 20 when federal lawmakers visited the plant.
