Tinubu approves sale  of crude oil to Dangote, others in Naira

President Bola Tinubu has approved has ordered sales of crude oil to Dangote company and other refineries by  Naira

However,the Federal Inland Revenue Service (FIRS) Chairman, Zacchaeus Adedeji, disclosed this to State House correspondents on Monday after the federal executive council (FEC) meeting at the Presidential Villa in Abuja on Monday.

Read also: Dangote confirms commencement of petrol production, vows to track supply —Commend Tinubu, for allowing crude oil to be selling in Naira

He said that with  effective and  immediately, the Nigerian National Petroleum Company (NNPC) Limited will engage with local refineries in transactions dominated in Naira.

According to him,  this move was also extended to the sale of crude oil to Dangote Refinery, with the subsequent sale of Dangote’s products to others also to be conducted in Naira.

He however stated that  the decision aimed to mitigate the heavy reliance on foreign exchange for crude oil imports, which currently accounts for roughly 30 to 40 per cent of Nigeria’s forex expenditure.

Read also: Dangote hails Tinubu on impact of crude for Naira swap deal

The FIRS boss further explained that by denominating transactions in Naira, the federal government expected to significantly reduce the forex burden, estimating annual savings of around $7.3 billion.

Adedeji emphasized that the shift will stabilize crude oil prices domestically by minimizing the impact of forex fluctuations.

Read also: To reduce fuel rices: NLC commends Dangote Refinery, urges FG to sell adequate crude in Naira 

The new policy is anticipated to ease the pressure on Nigeria’s foreign exchange reserves, reducing monthly forex expenditure from $50 million to approximately $600 million.

As part of the implementation, Afreximbank has been selected as the pilot settlement bank to facilitate the transactions.