Starting October 1, crude oil sales in Naira to Dangote and other local companies will commence, marking a significant shift in Nigeria’s oil trade.
Commencing on October 1, 2024, the Federal Government has revealed that crude oil sales to Dangote Refinery and other domestic refineries will begin.
During a meeting with the Implementation Committee on Monday in Abuja, Wale Edun – Minister of Finance and Coordinating Minister of the Economy – declared.
The finance ministry’s official X (previously known as Twitter) page posted that the meeting aimed to assess advancements made on significant initiatives.
During the meeting, stakeholders such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission and African Export-Import Bank were assigned crucial responsibilities to guarantee seamless execution.
Today, Mr. Wale Edun – the Minister of Finance and Coordinating Minister of the Economy- chaired a meeting for the Implementation Committee regarding transition to naira-based crude oil sales as stated in a post.
The progress of major initiatives was reviewed in the meeting, one among which included naira payments for crude oil sales to the Dangote Refinery set to commence from October 1st, 2024.
Dr Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service and the Chairperson of the Technical Sub-Committee announced that as per existing agreements, Dangote is anticipated to make its initial PMS delivery next month.
Additionally, information regarding the Port Harcourt and Dangote Refineries was shared, indicating substantial boosts in production by November 2024.
Emphasizing the importance of transparency, the minister instructed the Technical Sub-Committee to conclude particulars and generate a report for presentation to the President. The aim is to ensure that all instructions are implemented as scheduled from September onwards.
Let’s remember that on July 29th, the Federal Executive Council approved President Tinubu’s proposal for NNPC to stop selling crude oil to local refineries in foreign currency.
The Nigerian government’s Federal Executive Council has approved offering 450,000 barrels meant for domestic consumption to local refineries in Naira. As a pilot project, the Dangote refinery will be utilized.
The aim is to maintain a steady pump price for refined fuel and stabilize the exchange rate between the dollar and naira.
According to the findings, Dangote Refinery presently necessitates an annual supply of 15 shipments of crude oil.
As a reaction, the finance minister established a technical sub-committee assigned with crafting the structure for selling crude oil to domestic refineries using naira.
