The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on Monday convened a key meeting aimed at implementing President Bola Tinubuโs directive for the Nigerian National Petroleum Corporation Limited to sell crude oil to local refineries in Naira.
This initiative is intended to strengthen the domestic economy and support the sustainable operations of local refineries, including the Dangote Refinery.
The meeting brought together important stakeholders, including the Minister of State for Petroleum Resources (Oil) Senator HeinekenLokpobiri; the Group Chief Executive Officer of NNPCL Mele Kyari; the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, the Permanent Secretary of the Ministry of Finance, Mrs Lydia Jafiya, and other notable participants.
During the in-depth discussions, which underscored longstanding challenges within the petroleum sector, the finance minister expressed strong confidence in the collaborative efforts of all stakeholders to achieve the directiveโs objectives
The meeting is coming a few days after the president approved the sale of crude oil to Dangote Refinery and other local Refineries in Naira instead of Dollars.
Tinubu had extended an offer of support to the Dangote Refinery by proposing that NNPC Ltd sell crude to the refinery in Naira, providing a valuable lifeline.
In order to maintain the stability of fuel prices and the exchange rate between the dollar and the Naira, NewsNGR understands that the Federal Executive Council accepted a suggestion put forward by Tinubu during the meeting.
The proposal involves selling crude oil to Dangote Refinery and other new Refineries in Naira.
The Dangote Refinery currently needs 15 shipments of crude oil annually, amounting to a total cost of $13.5bn.
It was learnt that NNPC Ltd had pledged to provide four of these cargoes.
The FEC also 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.
Based on the approval, NewsNGR had reported that only the volume that is equivalent to domestic consumption would be billed in Naira.
The implication of this is that only the Nigerian National Petroleum Company will sell crude oil to Dangote Naira as the International Oil Companies are not covered by the arrangements.