President Bola Ahmed Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPCL) to conduct crude oil transactions with Dangote Refinery in the local currency, as reported by Vanguard News on July 29, 2024.
Thank you for reading this post, don't forget to subscribe!
This directive, aimed at stabilizing fuel prices and the Dollar-Naira exchange rate, was revealed by Bayo Onanuga, the Special Adviser to the President on Information and Publicity, in a social media post.
The Federal Executive Council approved President Tinubu’s plan to sell crude oil to Dangote Refinery and other new refineries in Naira.
Dangote Refinery needs 15 cargoes of crude oil yearly, totaling $13.5 billion. The NNPC will supply four of these cargoes, and the FEC has approved the allocation of 450,000 barrels for domestic refineries, starting with Dangote as a pilot. The exchange rate for these transactions will be fixed.
Afreximbank and local settlement banks will facilitate a new initiative to simplify trade between Dangote and NNPC Limited by eliminating the need for international letters of credit.
This change is expected to significantly reduce costs associated with importing refined fuel.
