President Bola Tinubu has mandated the Nigerian National Petroleum Company (NNPC) to sell crude oil to the Dangote Petroleum Refinery and other domestic refineries in naira.
This directive aims to stabilize fuel pump prices and the dollar-naira exchange rate. The Dangote Refinery, which will require about N1.7 trillion worth of crude oil monthly, is set to refine 500,000 barrels per day by August 2024 and 550,000 barrels per day by December 2024.
Industry experts believe that selling crude oil in naira will reduce fuel costs and strengthen the naira against the dollar.
The National Public Relations Officer of the Independent Petroleum Marketers Association and the Publicity Secretary of the Crude Oil Refiners Association expressed support for the directive, emphasizing the need for increased crude oil production to meet the demand.
NNPC aims to boost production to two million barrels per day by the end of the year, up from 1.6 million barrels in July.
The Dangote Refinery, expected to generate over $26 billion annually, has extensive facilities and a storage capacity of 4.5 billion liters.
It will produce 53 million liters of petrol per day, meeting Nigeria’s domestic needs and allowing for exports. NNPC’s Group Managing Director, Mele Kyari, is optimistic about achieving the increased production targets to support both domestic and export demands.
Punch