The Federal Executive Council (FEC) has directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira and not in US dollars.
The Federal Inland Revenue Service (FIRS) boss, Zack Adedeji, made the statement after a meeting of the FEC chaired by President Bola Tinubu in Abuja on Monday. He said this will reduce the pressure on the country’s budget and stabilize the price of petrol, diesel and other products in Nigeria.
Adedeji said the FEC has ordered the NNPCL of the state to immediately begin the full implementation of the order to boost the production of refined petroleum products in Nigeria. The revenue chief also said that Tinubu’s administration has mandated that refined products from Dangote’s factories be sold to oil dealers and oil distributors in naira, not US dollars.
Dangote-FG fight
The industrialist and owner of the Dangote small house, Aliko Dangote, has accused the authorities and international oil companies of obstructing the importation of oil to his $20 million factory located in the Lekki Free Zone near Lagos. . Collectors later questioned the type of petroleum products being produced at Dangote’s company, but the billionaire businessman said his company’s product range is more than what is imported by customers.
Dangote started operations at its largest site in Lagos last December with a production of 350,000 barrels per day. The refinery expects to reach its capacity of 650,000 barrels per day by the end of the year.
The refinery has started supplying diesel and jet fuel to retailers in the country while the supply of crude oil is expected to start in August despite the regulations.
