President Tinubu offers lifeline to Dangote Refinery, NNPC to sell crude to it in Naira

The approval of president Tinubu crude oil sales to Dangote Refinery and others in Naira  by the Federal Executive Council is a game changer for the economy and a life wire for the refineries.

This will ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate.

Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.

The question is that why don’t NNPCL satisfies domestic demand before supply crude to non domestic refinery(s)?

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.