The Nigerian government has approved a plan for global energy company the Nigerian National Petroleum Corporation (NNPC) to sell crude oil to the Dangote refinery and other local refineries in naira, the country’s local currency.
According to Nigeria’s tax and revenue agency the Federal Inland Revenue Service, the measure will reduce foreign exchange demand from $660 million to $50 million monthly, saving $7.32 billion per year.
Pan-African financial institution the African Export-Import Bank will serve as lead manager between the NNPC and the Dangote Refinery.
The $20 billion Dangote refinery, which began production in January, has struggled to secure enough crude to meet its 650,000-barrel-per-day capacity and has had to purchase oil on the international market.
