The Federal Executive Council (FEC) has directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in the country currency (naira) and not in United States greenback.
Federal Inland Revenue Service (FIRS) boss Zack Adedeji divulged this after a FEC meeting chaired by President Bola Tinubu in Abuja on Monday.
FEC Tell NNPCL ToSell Crude Oil To Dangote And Other Refineries In Naira
He said the measure would reduce the strain on the country’s foreign spendings and stabilise the pump price of petrol, diesel and other products in Nigeria.
Adedeji said FEC ordered that the state-owned NNPCL immediately begin the full implementation of the directive to boost local production of refined petroleum products in Nigeria.
The revenue boss also said the Tinubu administration ordered that the sale of refined products from Dangote Refinery to oil marketers and distributors be denominated in naira and not in US dollars.
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Foremost industrialist and owner of Dangote Refinery, Aliko Dangote, had accused the authorities and International Oil Companies of frustrating crude supply to his $20bn facility sited at the Lekki Free Trade Zone near Lagos.
Regulatory authorities would later questioned the quality of petroleum products produced at the Dangote Refinery but the billionaire businessman insisted that the quality of products at his refinery surpassed the ones imported by marketers.
Dangote commenced operations at his behemoth facility located in Lagos last December with 350,000 barrels a day. The refinery hopes to achieve its full capacity of 650,000 barrels per day by the end of the year.
The refinery has begun the supply of diesel and aviation fuel to marketers in the country while petrol supply is expected to commence in August amid regulatory resistance.