Tinubu’s Directive To Sell Crude Oil In Naira Will Cut Foreign Exchange Reliance – Otedola
Nigerian billionaire businessman Femi Otedola has commended President Bola Ahmed Tinubu’s recent directive to the Nigerian National Petroleum Corporation (NNPC) to begin trading crude oil with local refineries using the Naira. Otedola described this move as a groundbreaking intervention that will significantly reduce Nigeria’s dependence on foreign exchange.
The directive, approved by the Federal Executive Council (FEC), aims to stabilize the pump price of refined fuel and the dollar-Naira exchange rate.
This will be achieved by selling crude oil to local refineries, such as the Dangote Refinery, in Naira rather than foreign currency.
Otedola explained that the Dangote Refinery alone requires 15 cargoes of crude oil, valued at $13.5 billion annually.
While NNPC has committed to supplying four cargoes, the FEC has approved the sale of 450,000 barrels of crude oil meant for domestic consumption to Nigerian refineries in Naira.
The Dangote refinery will serve as a pilot for this initiative, with Afreximbank and other settlement banks in Nigeria facilitating the trade between Dangote and NNPC Limited.
Otedola highlighted the benefits of this initiative, including market stability, streamlined processes, and reduced reliance on foreign exchange.
He emphasized that this move is crucial for the Nigerian economy, ensuring the stability of fuel prices and the Naira, which will ultimately benefit the Nigerian people.
