Tinubu Directs NNPC to Sell Crude Oil to Dangote Refinery in Naira to Stabilize Fuel Prices

President Bola Tinubu has instructed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to the Dangote Refinery and other new refineries in Naira.

The directive was announced during the Federal Executive Council (FEC) meeting on Monday.

Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy, disclosed this development in a statement on X.

According to Onanuga, Tinubu’s decision is intended to stabilize both the pump price of refined fuel and the dollar-Naira exchange rate.

The Dangote Refinery, which currently requires 15 cargoes of crude oil, will initially receive 450,000 barrels intended for domestic use, and this will be sold in Naira.

The statement read, “To stabilize the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council has adopted President Tinubu’s proposal to sell crude oil to Dangote Refinery and other new refineries in Naira.

“Dangote Refinery needs 15 cargoes of crude oil annually, costing $13.5 billion. The NNPC will supply four cargoes. The FEC has approved that 450,000 barrels meant for domestic use be sold in Naira to Nigerian refineries, starting with Dangote. The exchange rate will be fixed for this transaction.

“Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. This move will eliminate the need for international letters of credit, reducing the country’s dollar payments.”