The Nigerian National Petroleum Company Limited (NNPCL) has been instructed by the Federal Executive Council (FEC) to sell crude oil to Dangote Refinery and other local refineries in naira rather than dollars. Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS), made this disclosure following Monday's FEC meeting.
According to Zacch Adedeji, FEC ordered that the state-owned NNPCL immediately begin the full implementation of the directive to boost local production of refined petroleum products in Nigeria. Adding that this measure would reduce the strain on the country’s foreign spending and stabilize the pump price of petrol, diesel, and other products in Nigeria.
He continued by stating that products from Dangote Refinery to oil marketers and distributors must also be sold in naira and not in US dollars.
In addition, Special Adviser to the President on Information and Strategy, In a statement disclosed that “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.
“Dangote Refinery at the moment requires 15 cargoes of crude, for $13.5 billion yearly. NNPC has committed to supply four.
“But 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.
“Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game-changing intervention will eliminate the need for international letters of credit. It will also save the country billions of dollars used in importing refined fuel.”
