The Federal Executive Council (FEC) has mandated the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira rather than U.S. dollars. This directive aims to reduce the strain on the country’s foreign reserves and stabilize the pump prices of petrol, diesel, and other petroleum products.
Zack Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), disclosed this development following a FEC meeting chaired by President Bola Tinubu in Abuja on Monday.
“The measure is expected to lessen the burden on Nigeria’s foreign spending and help stabilize the prices of petroleum products in the country,” Adedeji said.
He also announced that the FEC has instructed the state-owned NNPCL to begin the full implementation of this directive immediately to enhance local production of refined petroleum products. Additionally, the Tinubu administration ordered that the sale of refined products from Dangote Refinery to oil marketers and distributors be conducted in naira instead of U.S. dollars.
Aliko Dangote, the prominent industrialist and owner of Dangote Refinery, had previously accused authorities and International Oil Companies of hindering crude supply to his $20 billion facility located at the Lekki Free Trade Zone near Lagos. Regulatory authorities later questioned the quality of petroleum products produced at the Dangote Refinery. However, Dangote insisted that his refinery’s product quality surpassed that of imported products.
Dangote Refinery commenced operations last December with an initial capacity of 350,000 barrels per day, aiming to reach its full capacity of 650,000 barrels per day by the end of the year. The refinery has already begun supplying diesel and aviation fuel to marketers in the country, with petrol supply expected to start in August.
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