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The Federal Executive Council (FEC) has instructed the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other local refineries in naira instead of U.S. dollars. This directive was announced by the Chairman of the Federal Inland Revenue Service (FIRS), Zack Adedeji, following a FEC meeting led by President Bola Tinubu in Abuja on Monday.
Adedeji explained that this measure aims to reduce the strain on Nigeria’s foreign expenditures and stabilize the pump prices of petrol, diesel, and other petroleum products. He added that the state-owned NNPC is expected to implement the directive immediately to enhance local production of refined petroleum products.
The Tinubu administration also mandated that the sale of refined products from Dangote Refinery to oil marketers and distributors be conducted in naira.
Africa’s richest man, Aliko Dangote, the prominent industrialist and owner of Dangote Refinery, has previously accused the authorities and International Oil Companies of hindering crude supply to his $20 billion facility located at the Lekki Free Trade Zone near Lagos. Regulatory authorities have questioned the quality of the petroleum products produced at Dangote Refinery, but Dangote maintains that his refinery’s products are superior to those imported by marketers.
The Dangote Refinery began operations in Lagos last December with an initial capacity of 350,000 barrels per day. The facility aims to reach its full capacity of 650,000 barrels per day by the end of the year. Currently, the refinery supplies diesel and aviation fuel to local marketers, with petrol supply expected to commence in August, despite regulatory challenges.
