President Bola Tinubu is currently holding a briefing at the Aso Rock Presidential Villa in Abuja with the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency.
The committee, chaired by Finance Minister Mr. Wale Edun, includes notable members such as Aliko Dangote, Chairman of the Dangote Group, and Mr. Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL). They were spotted arriving at the Council Chamber shortly after 2:00 PM.
In early October, the Federal Government initiated a policy to allow the sale of crude oil to the Dangote Refinery in naira, moving away from traditional transactions in U.S. dollars.
This policy was approved by the Federal Executive Council and aims to stabilize domestic fuel prices while strengthening Nigeria’s currency by reducing dependence on dollars for crude oil transactions.
As part of this initiative, the NNPCL will supply crude oil to the Dangote Refinery in local currency, making it a pilot project for the new strategy.
The government anticipates that this approach will enhance the availability of petroleum products and lower costs associated with imports.
The Dangote Refinery, which requires substantial crude oil supplies annually, is expected to respond by selling petrol and diesel in naira, thus simplifying currency transactions and alleviating the economic pressures of fuel imports.
The Federal Government claims this strategy could reduce foreign exchange demands by up to 40%, with support from major institutions such as the Central Bank of Nigeria and AfreximBank.
However, tensions arose in September between the NNPCL and Dangote Refinery over pricing disputes. The NNPCL accused Dangote of charging a high price of N898 per litre for petrol, a claim that Dangote’s representatives deemed “misleading,” asserting that the official pricing terms had not yet been finalized.
During today’s meeting, President Tinubu is expected to address this ongoing dispute between the two companies.
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