Di federal government of Nigeria don direct make di Nigerian National Petroleum Company (NNPC) Limited dey sell crude oil to Dangote Refinery and oda local refineries for Naira and not di US dollars.
Dis na outcome of di Federal executive council (FEC) meeting wey President Bola Tinubu chair for Abuja on Monday.
Di Federal Executive Council bin accept di suggestion wey President Tinubu put forward on top di matter.
Di move go helep reduce di wahala wey dey on top di kontri foreign exchange of dollar to naira and fuel prices.
Also, e go make stable di pump price of petrol, diesel and oda products for Nigeria, authorities tok.
FEC also order say make di state-owned NNPCL immediately begin carry out di directive wey go boost local production of refined petroleum products for di kontri.
15 shipments of crude oil annually and oda tins wey FG gree for Dangote refinery
According to wetin presidential aide Bayo Onanuga share wit tori pipo.
- President Tinubu bin propose and di FEC agree make NNPC dey sell crude to di Dangote refinery and oda upcoming refineries for naira.
- Di Dangote refinery currently need 15 shipments of crude oil annually, wey go reach total moni of $13.5 billion – NNPC promise to provide four of dis cargoes.
- FEC don approve say di 450,000 barrels wey dey meant for domestic consumption, make e dey offered in Naira to Nigerian refineries, using di Dangote refinery as pilot. Di exchange rate go dey fixed for di duration of dis transaction.
Na Afreximbank and oda settlement banks for Nigeria go arrange di trade between Dangote and NNPC Limited.
Oga Onanuga tok for statement say di “game changing intervention go stop di need for international letters of credit and also save di kontri of billions of dollars wey dem dey use import refined fuel.”
Wetin dis news mean?
Economic analyst Shaibu Idris tell BBC Pidgin say di move na ogbonge one to begin sell crude to Dangote refinery na step to di right direction.
And na ogbonge advantage to di Nigerian economy.
“Our hope na say make di benefits dey felt by Nigerians sharpaly”
“We get situation wia red tape wey involve establishment of letters of credit and di associated fees dey eliminated”.
Shaibu Idris add say delays for processing of documents now go also dey avoided.
“Industrialist wey don show commitment to our kontri whether dem be Nigerians or foreigners deserve encouragement and protection”.
Idris further tok say di Dangote Refinery na one strategic national asset wey need protection, nurturing, and encouragement.
Any kind incentive suppose dey extended to di company so e go encourage smooth operation wey go benefit Nigerians and oda kontri citizens.
About whether Nigerians go fit get any direct benefit for dis, Idris tok say e no go necessarily impact on naira value.
“But e get two edge on di value of di naira. On one hand, di demand for dollars by Dangote Group to import crude oil go dey off di foreign exchange market.
“Same time, di dollars wey for fit come to di foreign exchange market from di sale of di crude oil dem sell to Dangote Group go no longer dey available for di foreign exchange market” Shaibu Idris explain.
Dangote refinery and NNPC gbas-gbos
Dis news dey come days after one gbas gbos between owner of di Dangote refinery Aliko Dangote and some petroleum agencies of di Nigeria goment.
Nigeria, even though na one of di biggest producers of crude oil for Africa, still dey depend on importation for evri petroleum product like Premium Motor Spirit (PMS) wey pipo sabi as fuel, kerosene, diesel, and aviation fuel for airplanes.
Di Nigeria goment get four refineries – two for Port Harcourt, and one each for Kaduna and Warri – but dem no dey work, so pipo bin think say dis Dangote refinery go save di situation.
Di initial plan be say di Nigeria goment through di Nigeria National Petroleum Corporation (NNPC) suppose get 20% stake for di refinery.
But according to wetin Dangote tell tori pipo for mid July, “NNPC no longer get 20% stake for di Dangote refinery… dem only get a 7.2%”.
E explain say NNPC no gree pay di balance of dia share wey dem bin suppose pay by June dis year, and even afta one month grace, dem still no pay.
Di Dangote Refinery tok say International Oil Companies (IOCs) for Nigeria no dey gree sell crude oil to dem, or dem go sell to dem for higher dan di official price set by NUPRC.
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) na dem dey oversee activities for di upstream petroleum sector.
But di oga of NUPRC, Gbenga Komolafe, bin tok for one interview wit Arise TV say, “e dey erroneous” to tok say IOCs dey sabotage Dangote refinery.
E bin explain say di process of making crude avaialable to refiners na by “willing buyer, willing seller basis”.
Also, di Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) bin allege say di quality of di diesel wey Dangote Refinery dey produce dey low and inferior to di ones wey dem dey import.
Oga of NMDPRA, Ahmed Farouk also allege say “Dangote dey request make we suspend or stop all importation espcially of AGO and Jet Kero, and direct all marketers to im refinery.
But dat one no dey good for di nation in terms of energy security, and e no good for di market bicos of Monopoly”.
But Dangote deny di allegation on Sunday 21 July as e tok say im diesel na di cleanest for di Nigeria market.
Also, Nigeria online newspaper Premium Times bin publish on Monday 22 July say Dangote say e no go mind to sell im refinery to di Nigeria goment if dem go wan buy am.
BBC Pidgin bin reach out to di Dangote Group for comment about di Premium Times interview.
- Wetin Dangote refinery start of operation mean for Nigerians?
- Wetin dey cause wahala between Dangote and Nigeria goment?
