Nigerian President Bola Tinubu has mandated the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to the Dangote Refinery using the Naira, Nigeria’s national currency. This directive was announced by presidential spokesperson Bayo Onanuga 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, for $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 a pilot. The exchange rate will be fixed for the duration of this transaction.
“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 billions of dollars used in importing refined fuel,” he said.
Despite commencing operations last December and aiming to reach full capacity by the end of the year, the refinery has encountered obstacles. Dangote has accused government agencies and international oil companies of hindering crude oil supply to the facility.
Additionally, regulatory authorities have questioned the quality of the refinery’s products, a claim Dangote vehemently denies.
While the refinery has begun supplying diesel and aviation fuel to the market, the introduction of petrol has been delayed due to regulatory hurdles.
