President Bola Tinubu is currently receiving a briefing from the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency at the Aso Rock Presidential Villa, Abuja.
The committee, chaired by Minister of Finance Wale Edun, includes key industry figures such as Aliko Dangote, Chairman of Dangote Group, and Mele Kyari, Group CEO of the Nigerian National Petroleum Company Limited (NNPCL). They arrived at the Council Chamber shortly after 2:00 pm.
Earlier this month, the Federal Government began implementing a policy to sell crude oil to the Dangote Refinery in naira instead of U.S. dollars. This initiative, approved by the Federal Executive Council, aims to stabilize domestic fuel prices and strengthen Nigeria’s currency by reducing reliance on dollars for crude oil transactions.
The policy allows NNPCL to supply crude oil in local currency, starting with Dangote’s refinery as the pilot project. By conducting transactions in naira, the government seeks to enhance the availability of petroleum products and reduce costs associated with imports. The Dangote Refinery, which requires substantial crude supplies annually, is expected to provide petrol and diesel in naira, easing currency exchange processes and mitigating the economic impact of fuel imports.
This approach is projected to decrease foreign exchange demands by up to 40%, with support from institutions like the Central Bank of Nigeria and AfreximBank facilitating the transition.
However, in September, a pricing dispute arose between NNPCL and the Dangote Refinery. NNPCL claimed to have purchased petrol from Dangote at ₦898 per litre, a price that Dangote’s representatives deemed “misleading,” noting that official pricing terms had yet to be finalized.
In today’s meeting, President Tinubu may address the ongoing dispute between the two companies.
