- The exchange rate will be fixed for the duration of this transaction
The Federal Executive Council (FEC) has approved the sale of crude oil to the Dangote Refinery and other local refineries in naira rather than dollars.
This was revealed to State House reporters by Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), following the Federal Executive Council (FEC) meeting on Monday.
The FIRS boss told state House reporters that with the approval, refined products from the refineries will be sold to marketers for local consumption.
In a statement, Bayo Onanuga, Special Adviser to the President on Information and Strategy, stated that the Federal Executive Council approved President Tinubu’s proposal to sell refined fuel to stabilise the pump price and Dollar-Naira exchange rate.
“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.”