In a bid to stabilize fuel pump prices and the dollar-Naira exchange rate, the Federal Executive Council has approved President Tinubu’s proposal to sell crude oil to Dangote Refinery and other upcoming refineries in Naira, a move expected to save the country billions of dollars spent on importing refined fuel.
President Bola Tinubu has proposed a lifeline to Dangote Refinery, with the Federal Executive Council approving the sale of crude oil to the refinery and other upcoming refineries in Naira.
Currently, Dangote Refinery requires 15 cargoes of crude annually, amounting to $13.5 billion. The Nigerian National Petroleum Corporation (NNPC) has committed to supplying four of these cargoes. The Federal Executive Council’s new directive will see the 450,000 barrels of crude earmarked for domestic consumption sold to Nigerian refineries in Naira, with Dangote Refinery serving as the pilot for this initiative.
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Afreximbank and other Nigerian settlement banks will facilitate the trade between Dangote Refinery and NNPC Limited. The exchange rate will be fixed for the duration of this transaction.
This intervention is expected to stabilize fuel pump prices and the dollar-Naira exchange rate, as well as boost local refining capacity.
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