Tinubu Directs NNPC To Conduct Crude Oil Transactions With Dangote In Naira

Tinubu Directs NNPC To Conduct Crude Oil Transactions With Dangote In Naira

President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other new refineries in Naira. This directive was issued during a Federal Executive Council meeting on Monday, as reported by Naija News……… CONTINUE READING

Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy, shared the news via X. He explained that the decision aims to stabilize the price of refined fuel and the dollar-Naira exchange rate.

Currently, Dangote Refinery requires 15 cargoes of crude oil, but the Federal Executive Council has approved the allocation of 450,000 barrels intended for domestic use, which will now be sold in Naira.

Onanuga’s statement outlined that the Federal Executive Council adopted President Tinubu’s proposal to conduct these transactions in Naira to support price stability and mitigate exchange rate fluctuations. Dangote Refinery’s annual crude oil cost amounts to $13.5 billion, with NNPC committed to supplying four cargoes. The approved 450,000 barrels for local refineries will be traded in Naira, with a fixed exchange rate for this transaction.

Afreximbank and other Nigerian settlement banks will manage the trade between Dangote and NNPC Limited. This initiative is expected to remove the need for international letters of credit and reduce dollar payments, benefiting the country financially.