- Recently, President Bola Tinubu directed NNPC to sell crude oil to Dangote Refinery and others in naira
- Reacting to this, Femi Otedola said the development means the exchange rate will be fixed for the duration of the transaction
- Additionally, he stated that there will be no need for international letters of credit due to the revolutionary intervention
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
Nigerian billionaire, Femi Otedola, has reacted to new directive by President Bola Tinubu to the Nigerian National Petroleum Company Limited (NNPC) to sell crude oil to Dangote Refinery and other upcoming refineries in naira.
Legit.ng had earlier reported that the move aims to stabilise the pump price of refined fuel and the dollar-naira exchange rate.
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According to the directive, Dangote Refinery requires 15 cargoes of crude yearly, costing $13.5 billion, and NNPC has committed to supplying four.
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How Otedola reacted to this
In his X post, Otedola stressed that Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly but NNPC has committed to supply four.
He added that while 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.
He added:
“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.”
Read also
Tinubu orders NNPC to sell crude oil to Dangote, issues other directives
Dangote offers to sell refinery
Legit.ng previously reported that Aliko Dangote said he was ready to relinquish ownership of the world’s biggest refinery to the NNPC.
The Nigerian billionaire spoke amid a new dispute over the sulphur content of petroleum products produced from the refinery and a reported misunderstanding with NNPC, one of the refinery's key equity partners, and the Nigeria Midstream Downstream Regulatory Authority (NMDPRA).
The refinery, which was commissioned by former President Mummadu Buhari, is estimated to have cost about $20 billion.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
Source: Legit.ng
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