The Federal Executive Council on Monday approved the sale of crude oil to Dangote Refinery and other local Refineries in Naira instead of Dollars.
The approval was given during the meeting chaired by President Bola Tinubu
During the meeting, President Tinubu extended an offer of support to the Dangote Refinery by proposing that NNPC Ltd sells crude to the refinery in Naira, providing a valuable lifeline. …CONTINUE READING
In order to maintain the stability of fuel prices and the exchange rate between the dollar and the Naira, the Federal Executive Council accepted a suggestion put forward by Tinubu during the meeting.
The proposal involves selling crude oil to Dangote Refinery and other new Refineries in Naira.
The Dangote Refinery currently needs 15 shipments of crude oil annually, amounting to a total cost of $13.5bn.
It was learnt that NNPC Ltd has pledged to provide four of these cargoes.
The FEC also agreed to make available 450,000 barrels for local consumption, which will be offered to Nigerian refineries in Naira, with the Dangote Refinery being the initial test.
The exchange rate will remain constant throughout this transaction.
Based on the approval, THE WHISTLER can report that only the volume that is equivalent to domestic consumption would be billed in Naira.
The implication of this is that only the Nigerian National Petroleum Company will sell crude oil to Dangote Naira as the International Oil Companies are not covered by the arrangements.
-THE WHISTLER
