The Federal Government has taken a significant step to boost the Nigerian economy by instructing the Nigerian National Petroleum Company (NNPC) to sell crude oil to the Dangote Refinery exclusively in naira. This move aims to promote domestic economic activities, reduce pressure on the foreign exchange market, and save the country billions of dollars spent on importing refined fuel.

According to Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Publicity, the Federal Executive Council approved a proposal to sell crude oil to Dangote Refinery and other upcoming refineries in naira. The Dangote Refinery requires 15 cargoes of crude oil yearly, costing $13.5 billion, and NNPC has committed to supplying four cargoes.

The sale of crude oil in naira will be facilitated by Afreximbank and other settlement banks in Nigeria, eliminating the need for international letters of credit. This game-changing intervention is expected to save the country billions of dollars and reduce foreign exchange pressures by about 94%.

Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), confirmed the move, stating that the arrangement will promote trade in local currency and reduce pressure on local refineries. The new policy will make economic predictability a reality, reduce foreign exchange pressures, and save finance costs of about $79 million.

The government’s decision to sell crude oil in naira is a significant step towards promoting domestic economic activities, reducing dependence on foreign exchange, and saving billions of dollars spent on importing refined fuel. This move is expected to have a positive impact on the Nigerian economy and boost the local currency.