President Tinubu Directs NNPC to Sell Crude to Dangote Refinery in Naira

President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other emerging refineries in Naira. This directive, announced by the Special Adviser to the President on Information and Publicity, Bayo Onanuga, was shared via his official X handle on Monday.

The decision, approved by the Federal Executive Council (FEC), aims to stabilize the pump price of refined fuel and the dollar-Naira exchange rate. Onanuga highlighted that the initiative was adopted to maintain economic stability and reduce the pressure on the national currency.

The Dangote Refinery currently requires 15 cargoes of crude annually, costing $13.5 billion. The NNPC has committed to supplying four cargoes. The FEC has also approved that the 450,000 barrels designated for domestic consumption be sold in Naira to Nigerian refineries, starting with the Dangote Refinery as a pilot project.

“The exchange rate will be fixed for the duration of this transaction,” Onanuga’s statement read. He added that Afreximbank and other settlement banks in Nigeria would facilitate the trade between Dangote and NNPC Limited. “This game-changing intervention will eliminate the need for international letters of credit, further saving the country from dollar payments.”

This strategic move is expected to enhance the financial stability of the country's oil industry by reducing dependency on foreign currency transactions and reinforcing the Naira's value. By selling crude in Naira, the government aims to ease the economic strain on the nation's refineries, ensuring more predictable and stable fuel prices for consumers.

As Nigeria navigates these economic reforms, this directive represents a significant step towards bolstering the country's financial autonomy and resilience.

Bayo Onanuga tweets;

Breaking: President Tinubu offers lifeline to Dangote Refinery, NNPC to sell crude to it in Naira

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… pic.twitter.com/Bldvu88El8 — Bayo Onanuga (@aonanuga1956) July 29, 2024