President Tinubu Orders NNPC to Sell Crude to Dangote Refinery in Naira

President Bola Tinubu has issued an executive order directing the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Refinery and other emerging indigenous refineries in Naira. The announcement was made by Bayo Onanuga, Special Adviser to the President on Information and Publicity, on X (formerly Twitter).

This directive aims to stabilize the pump price of refined fuel and the dollar-Naira exchange rate. The proposal was discussed and adopted by the Federal Executive Council on Monday.

“To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira,” Onanuga stated.

The Dangote Refinery currently requires 15 cargoes of crude, costing $13.5 billion annually. NNPC has committed to supplying four cargoes. The Federal Executive Council has approved that the 450,000 barrels allocated for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote Refinery as a pilot.

Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPCL. This intervention is expected to eliminate the need for international letters of credit and save the country billions of dollars spent on importing refined fuel.