By Chris Udochukwu
In a move to assuage and allay the fears expressed by the Dangote Refinery, the Federal Executive Council (FEC) on Monday approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as pilot. The exchange rate will be fixed for the duration of this transaction.
To ensure the stability of the pump price of refined fuel and the dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira.
Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.
Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited.
The game changing intervention will eliminate the need for international letters of credit. It will also save the country of billions of dollars used in importing refined fuel.
Precise Post recalls that the Nigerian Senate recently inaugurated the 15-member ad-hoc committee to investigate the allegations of economic sabotage in the petroleum industry.
This came on the heels of accusations by the management of Dangote Refinery that International Oil Companies (IOCs) in Nigeria were doing everything to frustrate the company’s survival.
