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FG Backs Dangote Refinery, Directs NNPC to Supply Crude in Naira

In a strategic move to stabilize fuel pump prices and the dollar-Naira exchange rate, the Federal Executive Council has approved a proposal from President Tinubu to supply crude oil to Dangote Refinery and other upcoming refineries in Naira.

Dangote Refinery currently requires 15 cargoes of crude annually, amounting to $13.5 billion. The Nigerian National Petroleum Corporation (NNPC) has committed to providing four cargoes.

The Council’s decision includes offering the 450,000 barrels intended for domestic consumption to Nigerian refineries, starting with the Dangote Refinery as a pilot project, with transactions conducted in Naira at a fixed exchange rate.

Afreximbank and other Nigerian settlement banks will facilitate these transactions between Dangote and NNPC Limited. This innovative measure aims to eliminate the need for international letters of credit, potentially saving the country billions of dollars spent on importing refined fuel.

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