The Federal Government has announced that sales of crude oil to the Dangote Refinery and other local refineries will commence on October 1, 2024. This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee on Monday in Abuja.
In a post on the official X (formerly Twitter) page of the finance ministry, it was revealed that the meeting focused on reviewing progress on key initiatives related to the transition to crude oil sales in naira.
Key stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank, were assigned specific roles to ensure the smooth implementation of this policy.
“The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira,” the post stated. “The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.”
During the meeting, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, and the Chairman of the Technical Sub-Committee reported that the first Premium Motor Spirit (PMS) delivery from Dangote is expected next month under existing agreements. Updates were also provided on the Port Harcourt and Dangote Refineries, with significant production increases anticipated from November 2024.
Minister Edun emphasized the importance of transparency and instructed the Technical Sub-Committee to finalize details and prepare a report for the President, confirming that his directives are on track for implementation from September.
This development follows the Federal Executive Council’s approval on July 29 of President Tinubu’s proposal for the Nigerian National Petroleum Corporation (NNPC) to halt the sale of crude oil to local refineries in foreign currency. The council approved that the 450,000 barrels allocated for domestic consumption be sold in naira to Nigerian refineries, with the Dangote Refinery serving as a pilot project.
The initiative is aimed at stabilizing the pump price of refined fuel and managing the dollar-naira exchange rate. Currently, the Dangote Refinery requires 15 cargoes of crude oil annually. In response, the finance minister has inaugurated a technical sub-committee to develop the framework for naira-based crude oil sales to local refineries.
