After Outburst, Nigerian Government Offers Dangote Refinery To Buy Crude In Naira

President Bola Ahmed Tinubu has proposed that the Nigerian National Petroleum Corporation (NNPC) sell crude oil to Dangote refinery in Naira.

The Federal Executive Council, in a move to stabilize fuel prices and the exchange rate, approved President Tinubu’s proposal on Monday.

This decision follows Aliko Dangote’s recent decision to suspend plans for a new steel plant amid concerns over potential monopolistic implications.

To ensure fuel price stability and manage exchange rate fluctuations, the FEC has endorsed selling 450,000 barrels of crude oil designated for domestic use to Nigerian refineries, with Dangote Refinery being the initial beneficiary. The exchange rate will be fixed for this transaction period.

Dangote Refinery currently requires 15 crude oil cargoes annually, totaling $13.5 billion. NNPC has committed to supplying four of these cargoes.