Tinubu Orders NNPC to Sell Crude Oil to Dangote, Issues Other Directives
- President Bola Tinubu has issued a matching order on the controversies between the NNPC Limited and Dangote Refinery
- The president mandated the NNPC Limited to sell crude oil to Dangote and other upcoming refineries in naira
- According to the presidency, this will help stabilise Nigeria's naira-to-dollar exchange rate and reduce the prices of fuel
President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other upcoming refineries in Naira.
According to the presidency, the move is imperative to stabilise the pump price of refined fuel and the dollar-naira exchange rate.
Source: Twitter
The Federal Executive Council (FEC) adopted this decision, which will use Dangote Refinery as a pilot.
Crude oil required by Dangote Refinery
The Dangote Refinery requires 15 cargoes of crude oil annually, costing $13.5 billion, and the NNPC has committed to supplying four of these cargoes.
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The Federal Executive Council (FEC) approved offering 450,000 barrels, meant for domestic consumption, in naira to Nigerian refineries. Afreximbank will facilitate the trade, eliminating the need for international letters of credit and saving the country from making dollar payments.
Bayo Onanuga, President Tinubu's special adviser on information and strategy, announced the development in a tweet on Monday, July 29.
Dangote vs Tinubu: What the presidency said
Onanuga's tweet reads in part:
"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 the pilot. The exchange rate will be fixed for the duration of this transaction."
See the tweet here:
Recently, Dangote Refinery and the NNPC clashed over the supply of crude oil. Dangote Refinery requested that the NNPC supply crude oil in naira, but the NNPC insisted on payment in dollars.
This led to a stalemate, with Dangote Refinery threatening to halt production if the issue was unresolved.
Atiku speaks on Dangote's controversies with NNPC
Legit.ng earlier reported that Atiku Abubakar, the PDP presidential candidate in the 2023 election, called on the federal government to protect the Dangote Refinery.
The former vice president warned that Nigeria risks losing foreign direct investments if the Dangote Refinery fails to operate.
According to Atiku, the Dangote refinery is the largest private investment Nigeria has ever made, and no investor would want to deal with the country should it fail.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
