……Tinubu orders NNPC to sell crude to Dangote in Naira – Onanuga
The Federal Government is hoping to save about $7.92 billion annually from the sale of crude oil to the nation’s local refineries in naira and thus reduce the pressure on foreign exchange.
This followed the approval on Monday by the Federal Executive Council (FEC) for trade among local refineries to be denominated in naira with immediate effect
The Chairman of the Federal Inland Revenue Service (FIRS), Zach Adedeji, disclosed this to correspondents after the meeting of the council presided over by President Bola Tinubu on Monday, saying that about $660 million is spent weekly on fuel importation, amounting to about $7.92 billion every year.
He said that the denomination of transactions will stabilise the pump price and make economic predictability reliable.
According to him, it is an innovation geared to solve the country’s problem.
He also disclosed that AFRIBANK has been approved as a settlement bank between Nigeria National Petroleum Company Limited (NNPCL) and Dangote Refinery for this purpose.
Tinubu orders NNPC to sell crude to Dangote in Naira – Onanuga
Meanwhile, President Bola Ahmed Tinubu, has directed the Nigerian National Petroleum Company Limited, NNPCL, to sell crude to Dangote Refinery in Naira.
The Special Adviser to the President on Information and Publicity, Bayo Onanuga, disclosed this in a post via his official X handle on Monday.
According to him: “To ensure the stability of the pump price of refined fuel and the Dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira.
“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.
“But 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. It will also save the country of billions of dollars used in importing refined fuel”.
