President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPC) to supply crude oil to Dangote Refinery and other emerging refineries in the Nigerian currency, the Naira.
News About Nigeria reports that this directive, announced by the President’s Special Adviser on Information and Publicity, Bayo Onanuga, aims to ensure a steady supply of refined fuel and mitigate the impact of exchange rate fluctuations on the economy.
The decision, approved by the Federal Executive Council, marks a departure from the traditional practice of trading crude oil in US dollars.
The statement added, “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, further saving the country of dollar payments.”
It was learned that the Federal Inland Revenue Service (FIRS) boss, Zack Adedeji, disclosed this after a FEC meeting chaired by President Bola Tinubu in Abuja on Monday.
He said the measure would reduce the strain on the country’s foreign spending and stabilise the pump price of petrol, diesel, and other products in Nigeria.
Adedeji said FEC ordered that the state-owned NNPCL immediately begin the full implementation of the directive to boost local production of refined petroleum products in Nigeria.
The revenue boss also said the Tinubu administration ordered that the sale of refined products from Dangote Refinery to oil marketers and distributors be denominated in naira and not in US dollars.
