Nigerian President Bola Tinubu has approved the sale of crude oil to the Dangote Refinery and other local refineries in the naira, the local currency.
The Special Adviser to the Nigerian President on Information and Publicity, Mr. Bayo Onanuga, said that the Federal Executive Council adopted the move to ensure the stability of the pump price of refined fuel and the exchange rate of the naira to the dollar.
Onanuga disclosed that the Federal Executive Council approved that the 450,000 barrels meant for domestic consumption be offered in naira to Nigerian refineries, using the Dangote refinery as a pilot.
Dangote Refinery at the moment requires 15 cargoes of crude at $13.5bn a year. 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 Nigerian settlement banks will facilitate the trade between Dangote and NNPC Limited, eliminating the need for international letters of credit. This game-changing intervention will save the country billions of dollars spent on importing refined fuel,” he stated.
