The Nigeria National Petroleum Company Ltd (NNPCL) has stated that the sales of petrol in Naira by the Dangote refinery will begin from October 1st, 2024.
This was disclosed in a statement signed by the NNPCL Spokesperson, Olufemi Soneye where the pump prices of petrol in different states were released.
According to the NNPCL, the current distribution of petrol from the Dangote refinery was priced in dollars as crude oil was supplied to the firm before the Naira agreement was reached.
It stated, “The NNPC Ltd can confirm that it is paying Dangote Refinery in USD for September 2024 PMS offtake, as Naira transactions will only commence on October 1st, 2024.”
The federal government has already set up a technical committee to work out the mechanism of the Naira transaction of products from the Dangote refinery to the NNPCL.
Alhaji Aliko Dangote, President of the Dangote Group, has revealed that the Federal Executive Council’s (FEC) decision to supply crude oil to the Dangote Refinery in local currency will significantly reduce Nigeria’s foreign exchange demand.
According to Dangote, this strategic move could slash foreign exchange needs by at least 40%, easing pressure on the country’s reserves.
He said, “I want to personally also thank Mr. President for creating this idea of Naira for Crude and also Naira for the product. This will give a lot of stability for the Naira because you remove 40% of the demand for the dollars in the market. That’s not only it.”
In July, Naijaonpoint reported the Federal Executive Council’s (FEC) approval of President Bola Tinubu’s proposal to sell crude oil to Dangote Refinery and other upcoming refineries in naira.
NMDPRA also confirmed that Dangote Refinery has commenced petrol production, with an expected output of 25 million litres of petrol in September.