President Tinubu has extended support to the Dangote Refinery by proposing that the NNPC sells crude oil to the refinery in Naira, providing a crucial lifeline.
To stabilize fuel prices and the exchange rate between the dollar and the Naira, the Federal Executive Council (FEC) has approved President Tinubu's suggestion to sell crude oil to Dangote Refinery and other new refineries in Naira.
The Dangote Refinery requires 15 shipments of crude oil annually, costing a total of $13.5 billion. The NNPC has committed to providing four of these shipments.
The FEC has agreed to allocate 450,000 barrels for local consumption, to be offered to Nigerian refineries in Naira, with the Dangote Refinery as the initial test. The exchange rate will remain fixed throughout this transaction.
Afreximbank and other Nigerian settlement banks will facilitate trade between Dangote and NNPC Limited, improving the process by eliminating the need for international letters of credit. This will result in significant cost savings for the country by reducing the billions of dollars spent on importing refined fuel.
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