Nigeria’s government has approved the sale of crude oil in the local naira currency to the Dangote refinery and other local refineries. This move aims to alleviate foreign exchange pressure and support the $20 billion Dangote refinery, which began production in January but struggled to secure enough crude for its 650,000-barrel-per-day capacity. Dangote had to buy oil internationally, leading to high prices and limited access. The new approval allows the state oil company NNPC Ltd. to sell crude domestically in naira, reducing reliance on costly imports. This policy is expected to cut foreign exchange demand for fuel importation by $7.32 billion annually, easing the burden on Nigeria’s forex reserves. The decision follows a deal with oil producers to sell crude to domestic refiners at market prices, aiming to resolve supply disputes and improve relations with oil majors.
SOURCE: REUTERS
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