President Bola Tinubu has directed the Nigerian National Petroleum Company (NNPC) to sell crude in naira to Dangote Refinery, in a bid to stabilize fuel prices.
Currently, Dangote Refinery requires 15 cargoes of crude, at a cost of $13.5 billion yearly while NNPC has committed to supply four.
However, 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.
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 and will also save the country of billions of dollars used in importing refined fuel.
