Victor EzejaThe Nigerian government has directed the Nigerian National Petroleum Company (NNPC) to sell crude oil to the Dangote Refinery and others in naira, in a bid to boost the local currency and promote domestic economic activities.
A statement by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, said it was adopted during the Federal Executive Council meeting on Monday.
Join our WhatsApp ChannelAccording to Onanuga, the move was to “ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate.”
“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.
“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as pilot. The exchange rate will be fixed for the duration of this transaction.”
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“Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game changing intervention will eliminate the need for international letters of credit. It will also save the country of billions of dollars used in importing refined fuel,” the presidency added.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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