President Bola Tinubu is currently receiving a briefing from the Implementation Committee on Crude Oil and Refined Products Sales in Local Currency at the Aso Rock Presidential Villa, Abuja.
The Minister of Finance, Mr Wale Edun, who chairs the committee, is leading the small delegation comprising the Chairman of Dangote Group, Aliko Dangote, and the Group CEO of the Nigerian National Petroleum Company Limited, Mr Mele Kyari.
According to reports by Punch, the committee members started arriving at the Council Chamber at minutes last 02:00 pm.
In early October, the Federal Government began implementing a policy to sell crude oil to the Dangote Refinery in naira rather than U.S. dollars.
This followed the Federal Executive Council’s approval which, the FG says, will stabilize fuel prices domestically and strengthen Nigeria’s currency by cutting down on the need for dollars in crude oil transactions.
The move also allows the NNPC to supply crude oil in local currency, with Dangote’s refinery as the pilot for this strategy.
By trading in naira, the government aims to improve the availability of petroleum products and decrease import-related costs.
The Dangote Refinery, which requires significant crude supplies annually, is expected to reciprocate by providing petrol and diesel in naira, simplifying currency transactions and lessening the economic strain of fuel imports.
The FG said the approach will reduce FOREX demands by up to 40 per cent as key institutions, including the Central Bank of Nigeria and AfreximBank, support the transition.
However, in September, the NNPCL and the Dangote Refinery were embroiled in pricing disputes.
The NNPCL claimed it bought petrol from Dangote at a high price of N898 per litre, a rate that Dangote’s representatives called “misleading,” stating that official pricing terms were yet to be finalised.
At Tuesday’s meeting, President May likely intervene in the simmering dispute between the two companies.
Details later…
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