The Federal Government has instructed the Nigerian National Petroleum Company (NNPC) to sell crude oil to the Dangote Refinery exclusively in naira, in a bid to boost the local currency and promote domestic economic activities.
Bayo Onanuga, special adviser to the President Bola Tinubu on information and publicity, disclosed this on his official X account on Monday.
“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 pilot,: the statement reads in part.
The statement added that the exchange rate will be fixed for the duration of this transaction, adding that 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 of billions of dollars used in importing refined fuel,” the statement read.