President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other emerging refineries in Naira.
The president’s special adviser on information and publicity, Bayo Onanuga, announced this in a post via his official X handle on Monday, July 29.
Recall that on July 18, Farouk Ahmed, chief executive officer (CEO) of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), stated that local refineries, including Dangote’s, produce inferior products compared to imported alternatives.
Dangote refuted this allegation by testing diesel from his refinery on July 20 during a visit from federal lawmakers.
The billionaire also claimed that international oil companies (IOCs) are not supplying crude oil to his refinery and called for an investigation into the allegations made by the NMDPRA.
The assertions claiming that IOCs in Nigeria are undermining the survival of Dangote Refinery will also be examined.
Onanuga, who announced President Tinubu’s directive, explained that the move, aimed at stabilizing the pump price of refined fuel and the dollar-Naira exchange rate, was approved by the Federal Executive Council that day.
He stated: “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 burgeoning refineries in Naira.
“At present, Dangote Refinery requires 15 cargoes of crude, costing $13.5 billion annually. NNPC has committed to supply four.
“However, the FEC has approved that the 450,000 barrels designated for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot project. 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. This transformative intervention will eliminate the need for international letters of credit and save the country billions of dollars currently spent on importing refined fuel.”
