President Tinubu Initiates Naira-Based Crude Sales to Boost Dangote R

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efinery


In a strategic move to stabilize both fuel pump prices and the exchange rate between the dollar and the Naira, the Federal Executive Council has approved President Tinubu's proposal to sell crude oil in Naira to the Dangote Refinery and other emerging refineries.


Currently, the Dangote Refinery requires 15 cargoes of crude annually, costing approximately $13.5 billion. To support this demand, the Nigerian National Petroleum Corporation (NNPC) has pledged to supply four cargoes.


The Council has sanctioned that the 450,000 barrels of crude designated for domestic use be sold in Naira to Nigerian refineries, starting with the Dangote Refinery as a pilot project. This arrangement includes fixing the exchange rate for the duration of the transaction.


Trade facilitation between Dangote and NNPC Limited will be managed by Afreximbank and other settlement banks in Nigeria. This initiative is poised to remove the necessity for international letters of credit and is expected to save the nation billions of dollars spent on importing refined fuel.



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