The Chairman of FBN Holdings, Femi Otedola, has commended President Bola Tinubu’s directive to the Nigerian National Petroleum Company Limited (NNPCL) to sell crude oil to Dangote Oil Refinery and Petrochemicals in Lagos State and other local refineries in naira.
The Star recalls that Tinubu gave the directive to the NNPCL on Monday, July 29, 2024.
The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who disclosed this while briefing State House correspondents at the end of the Federal Executive Council meeting in Abuja, said FEC approved that the sale of petroleum products to approved local petroleum marketing companies be conducted in naira at the same fixed exchange rate.
Adedeji stated that the proposal also includes a settlement bank (Afreximbank) facilitating both trades by providing guarantees to NNPCL to cover the payment risk of local refineries and to Nigerian commercial banks for the payment risk of petroleum marketing companies.
Speaking on the development via a post on his X account on Monday, Otedola described the president’s directive as a game-changing intervention, saying it will save Nigeria billions of dollars used in importing refined fuel.
Otedola: Dangote is titan God created for mankind
The Chairman of Geregu Power Plc stated: “To ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate, the Federal Executive Council today (Monday) 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.
“But the FEC has 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.
“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.”
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