FEC approves sale of Crude oil to Dangote in Naira

The Federal Executive Council (FEC) has approved the sale of Crude oil to Dangote Refinery and other local Refineries in naira instead of dollars.

This was disclosed to State House Reporters by the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, after the Federal Executive Council (FEC) meeting of Monday.

The FIRS boss, while addressing state House Reporters said, by the approval, refined products of the refineries will be sold to marketers for local consumption.

In a statement issued on the development, Bayo Onanuga, Special Adviser to the President on Information and Startegy, said,  “To ensure the stability of the pump price of refined fuel and the Dollar-Naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in Naira.

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“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.”