By Ayomide Otitoju
The Federal Executive Council (FEC) has instructed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote Refinery and other local refineries in naira instead of US dollars. This directive was announced by Federal Inland Revenue Service (FIRS) chairman Zack Adedeji following a FEC meeting chaired by President Bola Tinubu in Abuja on Monday.
Adedeji stated that the measure aims to reduce the strain on the country’s foreign exchange reserves and stabilize the prices of petrol, diesel, and other petroleum products in Nigeria. He emphasized that the NNPC should immediately implement this directive to enhance local production of refined petroleum products.
Additionally, the Tinubu administration has mandated that sales of refined products from the Dangote Refinery to oil marketers and distributors be conducted in naira rather than in US dollars.
Aliko Dangote, the industrialist behind the Dangote Refinery, had previously accused authorities and International Oil Companies of hindering crude supply to his $20 billion facility located at the Lekki Free Trade Zone near Lagos. Regulatory authorities had questioned the quality of the refinery’s petroleum products, but Dangote maintained that the quality surpassed that of imported products.
The Dangote Refinery, which began operations in December, currently produces 350,000 barrels per day and aims to reach its full capacity of 650,000 barrels per day by the end of the year. The refinery has already started supplying diesel and aviation fuel to local marketers, with petrol supply expected to commence in August despite regulatory challenges.
