The Federal Executive Council (FEC) has directed the Nigerian National Petroleum Company Limited (NNPCL) to commence the sale of crude oil to local refineries, including the Dangote Refinery.
Federal Inland Revenue Service (FIRS) boss Zack Adedeji disclosed after the FEC meeting today chaired by President Bola Tinubu.
He said the measure would reduce the strain on the country’s foreign spending and stabilise the pump price of petrol, diesel and other products in Nigeria.
Adedeji said FEC ordered the state-owned NNPCL to immediately begin implementing the directive to boost local production of refined petroleum products in Nigeria.
He said the FEC ordered that the sale of refined products from Dangote Refinery to oil marketers and distributors be denominated in naira and not in US dollars.
The move marks a significant shift in the government’s approach to domestic refining and aims to bolster local production capabilities.
The decision is expected to enhance the efficiency and output of Nigerian refineries, reduce the country’s reliance on imported refined products, and potentially lower fuel prices.