In a move aimed at stabilizing fuel prices and the exchange rate, President Tinubu has proposed that the Nigerian National Petroleum Company (NNPC) sell crude oil to the Dangote Refinery in Naira. The Federal Executive Council (FEC) has accepted the proposal, which will provide a valuable lifeline to the refinery.
The deal involves selling 450,000 barrels of crude oil to Nigerian refineries, including the Dangote Refinery, in Naira, with Afreximbank and other settlement banks facilitating the trade. This move is expected to reduce the country’s reliance on imported refined fuel, saving billions of dollars in the process.
The Dangote Refinery, which requires 15 shipments of crude oil annually, will benefit from NNPC’s commitment to provide four of these cargoes. The constant exchange rate throughout the transaction will also help maintain stability in fuel prices and the exchange rate between the dollar and the Naira.