Nigeria: Tinubu Offers Lifeline to Dangote Refinery, NNPC to Sell Crude Oil to Company in Naira

29 July 2024
This Day (Lagos)

To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council Monday 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, at a cost of $13.5 billion yearly. Nigerain National Petroleum Company (NNPC) has committed to supply four cargoes.

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 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 of billions of dollars used in importing refined fuel.

Details later...

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