Tinubu Mandates NNPCL to Supply Crude Oil to Dangote Refinery,Local Refineries in Naira to Reduce Foreign Exchange Pressures

By: Abdulwasiu Akintunde 

In a bid to fast track energy security, stability affordability in the oil sector, President Bola Ahmed Tinubu has mandated the Nigerian National Petroleum Company (NNPC) Limited to supply crude oil to Dangote Petroleum Refinery and other domestic refineries in local currency ti reduce foreign exchange pressures.

OPEN TELEVISION Naija reports that the Special Adviser on Information and Strategy to the President, Bayo Onanuga, announced that the Federal Executive Council (FEC) has adopted a proposal from President Tinubu to sell crude oil to Dangote Refinery and other upcoming refineries in Naira. 

To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council on Sunday adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira,” Onanuga stated. 

He explained that the Dangote Refinery currently requires 15 cargoes of crude annually, costing $13.5 billion, and that the NNPC has committed to supplying four of these cargoes.

OPEN TELEVISION Naija revealed that the decision follows a dispute between Dangote Refinery, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The FEC approved that the 450,000 barrels designated for domestic consumption be offered in Naira to Nigerian refineries, starting with the Dangote refinery as a pilot. 

The exchange rate will be fixed for the duration of this transaction. 

Onanuga also mentioned that the African Export-Import Bank (Afreximbank) and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC. 

This intervention aims to eliminate the need for international letters of credit, thereby saving the country from dollar payments.