Tinubu orders NNPC to sell crude to Dangote in Naira
Dangote
Tinubu orders NNPC to sell crude to Dangote in Naira
Abdullateef Fowewe
President Tinubu has offered a lifeline to the Dangote refinery and ordered the Nigerian National Petroleum Corporation to sell crude to the refinery in Naira.
A Nigerian businessman, Femi Otedola stated on Monday on his X account (formerly Twitter) that the directive which was made at the Federal Executive Council meeting aimed to stabilise the price of refined fuel and the exchange rate between the dollar and Naira.
He mentioned that the Dangote Refinery currently needs 15 crude oil cargoes annually, costing $13.5 billion, and the NNPC has agreed to provide four of them.
He wrote, “Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5bn yearly. NNPC has committed to supply four. But 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 a pilot. The exchange rate will be fixed for the duration of this transaction.
”Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game changing intervention will eliminate the need for international letters of credit. It will also save the country billions of dollars used in importing refined fuel.”
Dailyeconomy on Wednesday, July 24, 2024, reported that the shareholders under the aegis of the Pragmatic Shareholders Association of Nigeria defended Aliko Dangote over the petroleum product supply controversies.
