Nigerian President Bola Tinubu has approved the sale of crude oil to the Dangote Refinery and other local refineries in the local currency, the naira.
This decision, aimed at stabilizing fuel prices and the naira-to-dollar exchange rate, was adopted by the Federal Executive Council (FEC).
Bayo Onanuga, the Special Adviser to the President on Information and Publicity, announced that the FEC has approved selling the 450,000 barrels of crude oil designated for domestic consumption in naira, starting with the Dangote Refinery as a pilot project.
The Dangote Refinery, currently requiring 15 cargoes of crude annually at a cost of $13.5 billion, will receive four cargoes from the Nigerian National Petroleum Corporation (NNPC).
This initiative will be conducted in naira, with the exchange rate fixed for the duration of the transaction.
“Afreximbank and other Nigerian settlement banks will facilitate the trade between Dangote and NNPC Limited, eliminating the need for international letters of credit.
This game-changing intervention will save the country billions of dollars spent on importing refined fuel,” Onanuga stated.
