President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPC) to conduct transactions in Naira for the sale of crude oil to Dangote Refinery and other upcoming refineries.
This decision was communicated by Bayo Onanuga, the President’s Special Adviser on Information and Publicity, via his official social media account on Monday.
The move aims to stabilise both the pump price of refined fuel and the dollar-Naira exchange rate. The Federal Executive Council (FEC) endorsed this approach, with the Dangote Refinery initially serving as the pilot project. Currently, Dangote Refinery requires 15 cargoes of crude oil annually, costing around $13.5 billion, with NNPC committed to supplying four cargoes.
Under the new directive, 450,000 barrels of crude oil intended for domestic use will be sold in Naira to local refineries. The fixed exchange rate for this transaction will be maintained for its duration. Afreximbank and other Nigerian settlement banks will facilitate the trade, eliminating the need for international letters of credit and reducing reliance on foreign currency for such transactions.
