President Bola Tinubu has approved Nigerian National Petroleum Company Limited (NNPCL)’s supply of crude oil to Dangote and other upcoming refineries in naira.

The information was disclosed in a statement posted on the official X page of the president’s media aide, Bayo Onanuga, on Monday.

Mr Onanuga said the president’s approval is a means to stabilise the pump price of refined fuel, reduce pressure on the dollar-naira exchange rate, and save the country from billions of dollars spent on importing refined fuel.

The statement read, “To ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate, the Federal Executive Council today adopted a proposal by President Tinubu to sell crude to Dangote Refinery and other upcoming refineries in naira.

“Dangote Refinery at the moment requires 15 cargoes of crude, at a cost of $13.5 billion yearly. NNPC has committed to supply four.

“But the FEC has approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot. The exchange rate will be fixed for the duration of this transaction.”

It added, “Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited. The game-changing intervention will eliminate the need for international letters of credit. It will also save the country of billions of dollars used in importing refined fuel.”

Meanwhile, the approval followed the rift between the president of the Dangote Group, Aliko Dangote, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over monopoly allegations. The NMDPRA alleged that the billionaire businessman sought suspension on diesel and aviation fuel imports, which would make the company the only supplier in Nigeria.