FEC to NNPCL: Sell crude oil to Dangote and other refineries in naira

The Federal Executive Council (FEC) has authorized the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira rather than US dollars.

Zack Adedeji, the head of the Federal Inland Revenue Service (FIRS), announced this following an FEC meeting headed by President Bola Tinubu in Abuja on Monday.

He stated that the policy would lower the country’s foreign spending while also stabilising the pump price of fuel, diesel, and other products in Nigeria.

Adedeji stated that the FEC directed that the state-owned NNPCL immediately undertake full execution of the mandate to increase domestic production of refined petroleum products in Nigeria.

The revenue boss further stated that the Tinubu administration directed that refined products from Dangote Refinery be sold to oil marketers and distributors in naira rather than US dollars.

Dangote-FG Brawl
Aliko Dangote, the leading entrepreneur and owner of Dangote Refinery, had accused authorities and international oil companies of impeding crude delivery to his $20 billion plant in the Lekki Free Trade Zone near Lagos.

Regulatory authorities eventually questioned the quality of petroleum products produced at the Dangote Refinery, but the billionaire industrialist maintained that the products produced at his refinery outperformed those imported by marketers.

Dangote began operations at his gargantuan factory in Lagos in December, producing 350,000 barrels per day.

The refinery aims to reach its maximum capacity of 650,000 barrels per day by the end of the year.

The refinery has begun supplying diesel and aviation fuel to the country’s marketers, while petrol supply is set to begin in August despite regulatory pushback.