Days After Dangote Accused NNPC Of Operating Refineries In Malta, President Tinubu Proposes Naira-Based Crude Oil Sales To Dangote Refinery

Days After Dangote Accused NNPC Of Operating Refineries In Malta, President Tinubu Proposes Naira-Based Crude Oil Sales To Dangote Refinery In a strategic move to support the Dangote Refinery, President Tinubu has proposed a groundbreaking initiative: selling crude oil to the refinery in Naira, a decision that promises to provide a crucial lifeline. This proposal aims to stabilize fuel prices and manage the exchange rate between the dollar and the Naira, receiving approval from the Federal Executive Council (FEC) today.

Under this new scheme, crude oil will be sold to Dangote Refinery and other emerging refineries in Naira. Currently, the Dangote Refinery requires 15 shipments of crude oil annually, totaling a substantial $13.5 billion. NNPC has committed to supplying four of these shipments.

The FEC has also endorsed the allocation of 450,000 barrels for local consumption, which will be offered to Nigerian refineries in Naira, starting with the Dangote Refinery as a pilot. This arrangement will maintain a consistent exchange rate throughout the transaction.

Afreximbank and various Nigerian settlement banks will facilitate the trade between Dangote and NNPC Limited, streamlining the process by eliminating the need for international letters of credit. This shift is expected to yield significant cost savings for the country by cutting down on the billions of dollars currently spent on importing refined fuel.