Federal Executive Council Orders NNPC to Sell Crude Oil to Local Refineries
THE FEDERAL Executive Council (FEC) has directed the Nigerian National Petroleum Corporation (NNPC) to start selling crude oil to local refineries, including Dangote Refinery.
This move aims to stabilize refined fuel prices and the dollar-Naira exchange rate.
Under President Tinubu’s new strategy, crude oil will be sold to Dangote Refinery and other upcoming refineries in Naira.
Dangote Refinery requires 15 cargoes of crude oil each year, costing $13.5 billion.
NNPC will supply four of these cargoes.
The FEC’s plan involves selling 450,000 barrels, meant for domestic use, in Naira to Nigerian refineries, with Dangote Refinery as the first beneficiary.
The exchange rate will be fixed throughout the transaction.
Afreximbank and other Nigerian settlement banks will handle the trade between Dangote and NNPC.
The FEC says this approach eliminates the need for international letters of credit and will save the country billions in fuel import expenses.
