By Busari Kabirat
The Nigerian President, Bola Ahmed Tinubu has provided proposing support to the Dangote Refinery which will allow the NNPC to sell crude oil to the refinery in Naira to stabilize the fuel prices and the exchange rate between dollar and Naira.
According to suggestion put forward by President Bola Ahmed Tinubu today, which the Federal Executive Council has accepted a proposal involving the sales of crude oil in Naira to Dangote Refinery and every other new refineries.
The NNPC is willing to provide four cargoes to the Dangote Refinery as 15 shipments of crude oil is currently needed annually, amounting to a total of $13.5 billion.
450,000 barrels of fuel is agreed to be supplied by the FEC to make available for local consumption and will be offered to Nigerian refineries in Naira alongside with the Dangote refinery being the initial test while the exchange rate will remain the same all through the transaction.
It has come to conclusion that the transaction between Dangote and NNPC Limited, would be supported by the Afreximbank and other Nigerian settlement banks to improve the process by removing the requirement for international letters of credit.
Importing refined fuel in dollars would also be cut down as the country will be resulting in significant cost savings.
