Obasempire reports that President Bola Tinubu has approved a new directive to advance crude oil trade using the local currency.
The Chairman of the Federal Inland Revenue Service (FIRS), Zacchaeus Adedeji, revealed this to State House reporters on Monday, following the Federal Executive Council (FEC) meeting at the Presidential Villa in Abuja.
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He stated that, effective immediately, the Nigerian National Petroleum Company (NNPC) Limited will conduct transactions with local refineries in Naira.
This policy also applies to the sale of crude oil to Dangote Refinery, with Dangote’s subsequent product sales to be carried out in Naira.
Adedeji explained that the initiative aims to reduce the heavy dependence on foreign exchange for crude oil imports, which currently represents about 30 to 40 percent of Nigeria’s forex spending.
The FIRS Chairman added that by denominating transactions in Naira, the Federal Government hopes to significantly lessen the forex burden, projecting annual savings of approximately $7.3 billion.
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He emphasized that the shift is expected to stabilize domestic crude oil prices by minimizing the effects of forex fluctuations and alleviate pressure on Nigeria’s foreign exchange reserves, reducing monthly forex expenditure from $50 million to roughly $600 million.
Afreximbank has been chosen as the pilot settlement bank to implement the transactions.
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