By Adedapo Adesanya
President Bola Tinubu has directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude to Dangote Refinery and other upcoming refineries in Naira.
The Special Adviser to the President on Information and Publicity, Mr Bayo Onanuga, made this known in a post via his official X handle on Monday.
Mr Onanuga stated that the move, which is to ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, was adopted by the Federal Executive Council (FEC) today.
He said the intervention would eliminate the need for international letters of credit and save the country billions of Dollars used in importing refined fuel.
The FEC also approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot.
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.”
This comes after recent squabbles between the billionaire owner of the refinery, Mr Aliko Dangote and regulators in the country’s energy sector.
Mr Dangote accused regulators of failing to comply with Nigeria’s Petroleum Industry Act, which mandates local provision of crude oil to local refineries and discourages the import of refined petroleum products.
The regulators, in turn, accused Mr Dangote of seeking to be a monopoly.
He cancelled plans to venture into the steel manufacturing industry and also fired back that some top executives owned blending structures in Malta.
The federal government then stepped in the settle the rift.
Dipo Olowookere