President Bola Tinubu recently held a briefing with the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency at the Aso Rock Presidential Villa, Abuja.
The session, led by Minister of Finance Wale Edun, included a delegation featuring Aliko Dangote, Chairman of Dangote Group, and Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL).
This policy shift, initiated in early October, involves selling crude oil to the Dangote Refinery in naira rather than U.S. dollars, a decision approved by the Federal Executive Council. The move aims to stabilize domestic fuel prices, strengthen the naira, and decrease Nigeria’s reliance on foreign currency for crude transactions. As the pilot refinery, Dangote is expected to supply petrol and diesel in naira, which could reduce import-related costs and streamline currency transactions.
Support from key financial bodies, including the Central Bank of Nigeria and AfreximBank, has positioned this strategy to potentially cut FOREX demand by up to 40 percent. However, recent pricing disputes between NNPCL and Dangote Refinery have created tension. The NNPCL reported purchasing petrol at N898 per liter, a rate Dangote’s representatives argue is “misleading” as formal pricing terms are still under review.
President Tinubu’s meeting is expected to address these disputes and facilitate smoother collaboration between the two entities.
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