Tinubu’s Naira directive will cut foreign exchange reliance, says Otedola

Tinubu’s Naira directive will cut foreign exchange reliance, says Otedola

Billionaire businessman, Femi Otedola has praised President Bola Ahmed Tinubu’s directive for the adoption of the Naira in crude oil trading within Nigeria, calling it a “game-changing intervention” that will significantly reduce the country’s reliance on foreign exchange.

Tinubu directed the Nigerian National Petroleum Corporation (NNPC) to immediately commence engagement with local refineries in transactions dominated in Naira.

Otedola on his X account said this move, adopted by the Federal Executive Council (FEC), aims to stabilise both the pump price of refined fuel and the dollar-Naira exchange rate by selling crude oil to Dangote Refinery and other upcoming refineries in Naira.

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“Dangote Refinery currently 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 a pilot. The exchange rate will be fixed for the duration of this transaction,”

Otedola emphasised the expected market stability this initiative will bring and noted that Afreximbank and other settlement banks in Nigeria will facilitate the trade between Dangote and NNPC Limited.

He highlighted the importance of this move in streamlining the process, ensuring smoother transactions, and reducing reliance on foreign exchange.

“This initiative is crucial for our economy. It will ensure the stability of fuel prices and the Naira, ultimately benefiting the Nigerian populace,” Otedola remarked.

Tinubu’s Naira directive will cut foreign exchange reliance, says Otedola