In a landmark move aimed at stabilizing fuel pump prices and the dollar-Naira exchange rate, the Federal Executive Council has approved President Tinubu’s proposal to sell crude oil to Dangote Refinery and other upcoming refineries in Naira.
Currently, Dangote Refinery requires 15 cargoes of crude annually, amounting to $13.5 billion. The Nigerian National Petroleum Corporation (NNPC) has committed to supplying four of these cargoes.
The Federal Executive Council’s new directive will see the 450,000 barrels of crude earmarked for domestic consumption sold to Nigerian refineries in Naira, with Dangote Refinery serving as the pilot for this initiative. The exchange rate will be fixed for the duration of this transaction.
Afreximbank and other Nigerian settlement banks will facilitate the trade between Dangote Refinery and NNPC Limited. This intervention aims to eliminate the need for international letters of credit and is expected to save the country billions of dollars currently spent on importing refined fuel.
