By Sabiu Abdullahi
President Tinubu has proposed that the Nigerian National Petroleum Company (NNPC) sell crude oil to the Dangote Refinery and other new refineries in Naira.
This is believed to be a move aimed at stabilising fuel prices and the exchange rate between the dollar and the naira.
The Federal Executive Council (FEC) accepted the proposal, which is expected to provide a valuable lifeline to the Dangote Refinery.
According to reports, the Dangote Refinery requires 15 shipments of crude oil annually, totaling $13.5 billion.
The NNPC has pledged to provide four of these cargos.
The FEC has agreed to make available 450,000 barrels for local consumption, which will be offered to Nigerian refineries in Naira, with the Dangote refinery being the initial test.
The exchange rate will remain constant throughout this transaction, and Afreximbank and other Nigerian settlement banks will support trade between Dangote and NNPC Limited, removing the requirement for international letters of credit and resulting in significant cost savings for the country by reducing the billions of dollars spent on importing refined fuel.
This move is seen as a strategic step towards maintaining the stability of fuel prices and the exchange rate between the dollar and the naira.