BREAKING: Reasons behind Tinubu's order to NNPC to sell crude oil to Dangote in naira emerge

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, this move aims to stabilize the pump price of refined fuel and the dollar-Naira exchange rate.

Tinubu orders sale of crude oil to Dangote Refinery in Naira Photo Credit: @officialABAT
Source: Twitter

The Federal Executive Council (FEC) adopted this decision, which will use Dangote Refinery as a pilot.

Dangote Refinery requires 15 cargoes of crude yearly, costing $13.5 billion, and NNPC has committed to supplying four.

The FEC approved offering 450,000 barrels meant for domestic consumption in Naira to Nigerian refineries, with Afreximbank facilitating the trade, eliminating the need for international letters of credit and saving the country from dollar payments.

Bayo Onanuga, the special adviser to President Tinubu on information and strategy, announced the development in a tweet on Monday, July 29.

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:

Source: Legit.ng