BREAKING: Tinubu, Dangote and others face off over Naira-for-Crude policy, details emerge

President Bola Tinubu is currently being briefed by the Implementation Committee on the sale of crude oil and refined products in local currency.

Legit.ng It turned out that the meeting is currently held at: Aso Rock Presidential Villa in Abuja.

The meeting aims to cement the recent policy change allowing the sale of crude oil to the Dangote Refinery in naira instead of US dollars, reports The Punch.

Key figures present

The Minister of Finance, Mr. Wale Edun, who chairs the committee, is leading a small delegation that includes Aliko Dangote, Chairman, Dangote Group, and Mr. Mele Kiari, Group CEO, Nigerian National Petroleum Company Limited (NNPCL).

According to Vanguard, members of the committee were seen arriving at the Council Chamber just after 2:00 p.m.

Detention under the Naira-For-Crude policy

In early October, the federal government began implementing this new policy aimed at stabilizing domestic fuel prices and strengthening the Nigerian currency.

By reducing reliance on dollars in crude oil transactions, the government believes it can increase the availability of petroleum products and reduce costs associated with imports.

The Dangote refinery will be the pilot project for this initiative.

“We are optimistic that naira trading will simplify foreign exchange transactions and ease the economic burden of fuel imports,” President Tinubu said.

Benefits for Nigeria Economy

The Federal Government expects this approach to reduce the demand for foreign exchange by up to 40%, supported by key institutions such as the Central Bank of Nigeria and AfreximBank. The oil refinery in Dangote, which requires a large supply of crude oil annually, will reciprocate by supplying petrol and diesel in naira.

“The new policy is a significant step towards economic independence and currency stability,” said Mr. Edun.

Disputes over prices are still ongoing

Despite the upbeat outlook, tensions remain over earlier price disputes between NNPCL and Dangote Refinery. In September, NNPCL said it had bought petrol from Dangote at a high price of €898 per litre. However, Dangote representatives called the statement “misleading”, saying that official pricing terms have yet to be approved.

During this meeting, President Tinubu may intervene to resolve these ongoing disputes, paving the way for smoother transactions under the new policy.

Further updates are expected

Details of the outcome of the meeting are expected to be released at a later date as discussions continue on the implications of this significant policy change.

Source: Legit.ng