Tinubu Directs NNPC to Sell Crude to Dangote Refinery in Naira, Announces Onanuga
Written by Jerry Alomatu on July 29, 2024
President Bola Ahmed Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery in Naira. This announcement was made by the Special Adviser to the President on Information and Publicity, Bayo Onanuga, via his official X handle on Monday.
Onanuga explained, “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 crude to Dangote Refinery and other upcoming refineries in Naira.”
He added, “Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.”
According to Onanuga, “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.”
The transaction will be facilitated by Afreximbank and other settlement banks in Nigeria, eliminating the need for international letters of credit and potentially saving the country billions of dollars spent on importing refined fuel.
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Author: Jerry Alomatu
Astute communicator
