Ogasabi reports that the Federal Executive Council (FEC) has instructed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other nearby refineries in naira instead of US dollars. This directive aims to stabilize the prices of gasoline, diesel, and other products at the pump in Nigeria and reduce the burden on the nation’s foreign expenditures.
Zack Adedeji, the Head of the Federal Inland Revenue Service (FIRS), announced this decision after a recent FEC meeting presided over by President Bola Tinubu. This move will also boost Nigeria’s domestic production of refined petroleum products. The Tinubu administration has further mandated that payments for refined products sold by Dangote Refinery must be made in naira rather than US dollars.
This breaking news from 9am news Nigeria follows allegations from Aliko Dangote, a prominent industrialist and owner of the Dangote Refinery. Dangote accused international oil companies and the government of obstructing the flow of crude oil to his $20 billion plant Refinery in the Lekki Free Trade Zone near Lagos. Despite some regulatory concerns over the quality of petroleum products produced at the Dangote Refinery, Dangote asserted that his refinery’s products surpass the quality of imported products marketed by others.
Since starting operations last December, the Dangote Refinery has produced 350,000 barrels per day, with plans to reach its full capacity of 650,000 barrels per day by the end of the year. According to 9am news, the refinery has already begun supplying diesel and aviation fuel to marketers, with petrol supply expected to start in August despite facing some regulatory challenges.
