JUST IN: Tinubu Orders Sale Of Crude Oil To Dangote, Others In Naira
The Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, announced to State House Reporters after the Federal Executive Council (FEC) meeting on Monday that the council has approved a proposal by President Tinubu to sell crude oil to Dangote Refinery and other upcoming refineries in Naira.
This move aims to stabilize the pump price of refined fuel and the Dollar-Naira exchange rate.
According to Bayo Onanuga, Special Adviser to the President on Information and Strategy, the Dangote Refinery requires 15 cargoes of crude oil yearly, costing $13.5 billion.
While the Nigerian National Petroleum Corporation (NNPC) has committed to supplying four cargoes, the FEC has approved the sale of 450,000 barrels meant for domestic consumption to Nigerian refineries, using the Dangote refinery as a pilot.
The exchange rate for this transaction will be fixed.
Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited, eliminating the need for international letters of credit.
This intervention is expected to save the country billions of dollars previously spent on importing refined fuel.
Additionally, refined products from the refineries will be sold to marketers for local consumption, ensuring a stable supply of fuel in the country.
