IN what appears to be a bold move towards curbing long fuel queues and assuaging Nigerians preparing for protest, President Bola Tinubu has directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude to Dangote Refinery and other upcoming refineries in the nation’s currency – the naira.
The Special Adviser to the President on Information and Publicity, Bayo Onanuga, made this position known in a post via his official X handle on Monday, July 29.
Onanuga said the move, which is to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate, was adopted by the Federal Executive Council (FEC) on Monday.
According to him, Dangote Refinery requires 15 cargoes of crude for $13.5 billion yearly, and the NNPC has committed to supply four.
However, 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 a pilot.
Onanuga added, “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, further saving the country of dollar payments.”
Nigeria has been experiencing fuel supply glitches running into weeks, particularly in Lagos and Abuja, over supply disruptions in the discharge of operations of some vessels, according to the NNPCL.
The ICIR reported that fuel queues started building up in some filling stations in the FCT on Friday, July 26, as motorists were seen engaging in panic buying.
This latest development is amidst the call for protest against the Nigerian government to improve the living standards of Nigerians and end bad governance.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.