Sell Crude Oil to Refineries in Naira, Tinubu Directs NNPCL

President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other upcoming refineries in naira. This directive aims to stabilize the pump price of refined fuel and the dollar-naira exchange rate.

The directive was conveyed by Bayo Onanuga, the Special Adviser to the President on Information and Publicity, via his official X handle on Monday, July 29, 2024. He explained that the Federal Executive Council has adopted President Tinubu’s proposal to sell crude in naira to ensure economic stability.

“Dangote Refinery currently requires 15 cargoes of crude annually, amounting to $13.5 billion. The NNPCL has committed to supplying four of these cargoes,” Onanuga stated. He further detailed that the Federal Executive Council has approved selling 450,000 barrels of crude, intended for domestic consumption, to Nigerian refineries in naira, using Dangote Refinery as a pilot project.

The exchange rate will be fixed for the duration of this transaction, and Afreximbank along with other Nigerian settlement banks will facilitate the trade between Dangote and NNPCL.

This intervention aims to eliminate the need for international letters of credit and save the country billions of dollars currently spent on importing refined fuel.

This directive comes shortly after Nigerian billionaire Femi Otedola called for federal support for Aliko Dangote and other local investors amid ongoing disputes between Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The head of NMDPRA, Farouk Ahmed, recently accused Dangote Refinery of producing fuel with high sulfur levels and attempting to monopolize the oil industry, which could potentially threaten the country’s energy sector.