Breaking: President Tinubu offers lifeline to Dangote Refinery, NNPC to sell crude to it in Naira.

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 pilot. The exchange rate will be fixed for the duration of this transaction.

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.

Source: https://www.thecable.ng/breaking-tinubu-directs-nnpc-to-sell-crude-oil-to-dangote-refinery-in-naira/amp/

This is Tinubu's first intervention in this matter and it turns out good

Some guys here were quick to paint some ethnic picture of an issue tht erupted when Kyari and Bashirat,both of Northern origin,called out Dangote, of same origin...

How does that even sound?

God bless PBAT

O That's fine

This make sense. So far Dangote will supply Nigeria locally to reflect the reduced price. This will save lot of $$ we use in importing crude too.

As an independent importer, if you can import fule at a value less than what Dangote sells it, then that is great for you.

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 pilot. The exchange rate will be fixed for the duration of this transaction.

This is a commendable move by the president

If Dangote was a foreigner, will such a move be interpreted as a lifeline or it will be just the normal duty of the govt?

[quote author=LegendHero post=131208140][/quote]

This government doesn't understand what they are doing. No policy can be sustained. I hope Dangote will be OK now.Lets wait till August.

LegendHero:

This is what we call a strategic move!

Finally, a government that understands the importance of local currency in boosting our economy. Naira for crude sales? Smart thinking!

Let’s support our local industries and strengthen our financial stability. This is how we build a resilient nation.

Kudos to Tinubu for taking such a bold step!

Some people from the east side of the Niger will not be happy with this news as good news give them headaches.

iwaeda:


This government doesn't understand what they are doing. No policy can be sustained. I hope Dangote will be OK now.Lets wait till August.

Zombiez, now that Tinubu responded in support of Dangote, you can now go back to hating Dangote and commenting nonsense.

Obedient are like robots. Tinubu is the one controlling their thoughts. If tomorrow Tinubu say it is a good thing to to live, Obedient will embrace death the next day. That's how bad it is.

Very good move
Make dollar fall small even if its to 800-1200 naira

Smart move by Tinubu's advisors.

I want more of this

Good development.
Govt decisions shouldn't be influenced by personal bias and sentiments of the officials.
Rather, economic,social and environmental factor should be the influencing factors.

Let's just hope fuel will sell at 500 after all this drama

The problem is beyond the currency of sale. If NNPC will sell only 4 four cargoes to dangote as against the needed 15, it means he will source the balance from other countries. Even though this may be a temporary arrangement till our oil production improves or till when we are done fulfilling our obligation to those we sold our crude to on forward contract, there is still a shortfall of 11 cargoes in the short term that will ultimately affect pricing despite hedging the crude sale agreement.

Again, how much will Dangote sell PMS to marketers? Or, will NNPC buy PMS directly from Dangote and then sell to marketers at a reduce price to maintain the current pump price? A lot still have to be decided to make this Dangote refinery very beneficial to Nigerians.

seunmsg:
The problem is beyond the currency of sale. If NNPC will sell only 4 four cargoes to dangote as against the needed 15, it means he will source the balance from other countries.

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 pilot.

I think FG did the right thing for now. Dangote capacity is 650k bpd and FG is offering 450k bpd for the pilot and that is because that is what we consume locally.

Until we can increase our crude output to 2million bpd, I don't think FG should be subsidizing Dangote sales to other countries which will be the remaining 200k bpd.

To even think of it, Dangote refinery will not be operating at full capacity for the next few months so he can still utilize that 450k for now. Remember we also have other crude commitments and we also need forex from crude that we export in $$.

So all along Dangote has been right with his allegations against Oil Mafia

I hope it's not fake news

LegendHero:
This make sense. So far Dangote will supply Nigeria locally to reflect the reduced price. This will save lot of $$ we use in importing crude too.

As an independent importer, if you can import fule at a value less than what Dangote sells it, then that is great for you.

Why not go for Malta 🇲🇹?

LegendHero:


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 pilot.

I doubt if NNPC has 450,000 barrels that they can give to Dangote daily. We barely produce about 1.7 million barrels daily now. By the time IOCs take their share, NNPP will be struggling to have enough to give to those they have collected money from.

LegendHero:


Source: https://www.thecable.ng/breaking-tinubu-directs-nnpc-to-sell-crude-oil-to-dangote-refinery-in-naira/amp/

Excellent news! Exactly what I was hoping from this government.

This should have some positive impact on the exchange rate.

Selling in dollars would have been disastrous.

Next step would be to subsidise the cost of crude supplied and agree selling price at the pumps.

Kudos to the government for this move. I really mean it (no sarcasm)

Na so e be! Tinubu dey show say him get plans wey go benefit Nigeria. Naira for crude na big move!

Make we see how e go change the game for our economy.

Hope it's not knee jerk reaction.

I Love Bola Ahmed Tinubu

seunmsg:


I doubt if NNPC has 450,000 barrels that they can give to Dangote daily. We barely produce about 1.7 million barrels daily now. By the time IOCs take their share, NNPP will be struggling to have enough to give to those they have collected money from.

Let’s see if FG will uphold their own side.

Dangote selling his crude back as reported by Bloomberg could be because of FG wanting to supply crude at discounted price.

I say discounted because they will fix the naira value.

https://www.thecable.ng/breaking-tinubu-directs-nnpc-to-sell-crude-oil-to-dangote-refinery-in-naira/amp/

Good move

This is very commendable from president TINUBU

This is a commendable move by President TINUBU! Selling crude oil to Dangote refinery in naira shows a clear vision for boosting our economy and supporting local industries. The future is looking bright under his leadership!

trutharena:
This is a commendable move by President TINUBU! Selling crude oil to Dangote refinery in naira shows a clear vision for boosting our economy and supporting local industries. The future is looking bright under his leadership!

Great!!!