President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other domestic refineries in Naira rather than in foreign currencies. This decision, announced by Special Adviser Bayo Onanuga, aims to stabilize both the pump price of refined fuel and the dollar-Naira exchange rate.
The Federal Executive Council (FEC) has approved this approach, starting with the Dangote Refinery as a pilot project. Currently, Dangote Refinery requires 15 cargoes of crude oil annually, valued at $13.5 billion, with NNPC committed to supplying four of these.
The plan involves selling 450,000 barrels allocated for domestic consumption in Naira, with a fixed exchange rate for the transaction period.
Afreximbank and other settlement banks will handle the trade, eliminating the need for international letters of credit and reducing dollar payments.