In a major policy shift, President Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to the Dangote Refinery using Naira. This new approach, announced by Bayo Onanuga, a media aide to the president, is designed to stabilize fuel prices and the Naira-Dollar exchange rate.

The Federal Executive Council (FEC) has approved this plan, making Dangote Refinery the first to benefit from this arrangement. The move is expected to cut costs associated with importing refined fuel and eliminate the need for international letters of credit, which have previously burdened the country.

Currently, Dangote Refinery requires 15 cargoes of crude oil annually, amounting to about $13.5 billion. While NNPCL has committed to supplying four cargoes, the rest will be sold in Naira to Nigerian refineries. Afreximbank and other Nigerian banks will facilitate these transactions.

This decision comes amid ongoing disputes between Dangote Refinery and various oil sector regulators. The introduction of this policy aims to address these conflicts and foster a more stable and cost-effective fuel supply system in Nigeria.

Stay tuned for more updates on how this policy unfolds and its impact on the Nigerian oil and gas sector.