The Federal Executive Council (FEC) has approved a proposal for the state oil company, NNPC Ltd, to begin selling crude oil in naira to the Dangote refinery
Previously, Dangote has had to purchase oil on the international market due to complaints that oil majors were blocking its access to locally produced crude by either selling it above market price or claiming it was unavailable. As a result, the refinery was forced to rely on expensive imports.
Bayo Onanuga, the special adviser to the President Bola Tinubu on information and publicity, said on Tuesday that the Federal Executive Council adopted a proposal 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,” Onanuga said on his X account.
He added, “ 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”.
