BREAKING: Details emerge as Tinubu, Dangote, other powerful delegations meet over naira-for-crude policy

3 weeks ago 2

President Bola Tinubu is currently briefed by the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency.

Legit.ng gathered that the meeting is currently being held at the Aso Rock Presidential Villa in Abuja.

The meeting aims to solidify the recent policy shift allowing the sale of crude oil to the Dangote Refinery in naira instead of U.S. dollars, The Punch reported.

Key figures in attendance

The Minister of Finance, Mr. Wale Edun, who chairs the committee, leads a small delegation that includes Aliko Dangote, Chairman of Dangote Group, and Mr. Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL).

Members of the committee were seen arriving at the Council Chamber just after 2:00 PM, Vanguard reported.

Detains on the Naira-For-Crude Policy

In early October, the Federal Government began implementing this new policy aimed at stabilizing domestic fuel prices and strengthening the Nigerian currency.

By reducing reliance on dollars in crude oil transactions, the government believes it can enhance the availability of petroleum products and decrease costs associated with imports.

The Dangote Refinery is set to be the pilot project for this initiative.

“We are optimistic that trading in naira will streamline currency transactions and mitigate the economic burden of fuel imports,” President Tinubu stated.

Benefits for Nigeria’s Economy

The Federal Government expects this approach to reduce foreign exchange demands by up to 40%, supported by key institutions like the Central Bank of Nigeria and AfreximBank. The Dangote Refinery, which requires substantial crude supplies annually, will reciprocate by supplying petrol and diesel in naira.

“The new policy represents a significant step towards economic independence and currency stability,” Mr. Edun noted.

Pricing Disputes Still Linger

Despite the optimistic outlook, tensions remain from previous pricing disputes between NNPCL and the Dangote Refinery. In September, the NNPCL claimed it acquired petrol from Dangote at a high price of N898 per litre. However, Dangote’s representatives labeled this claim as “misleading,” asserting that the official pricing terms were not yet finalized.

With this meeting, President Tinubu may intervene to resolve these ongoing disputes, paving the way for smoother transactions under the new policy.

Further Updates Expected

Details on the outcomes of the meeting are expected to emerge later as discussions continue on the implications of this significant policy shift.

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Source: Legit.ng

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