Starting on October 1, 2024, the Federal Government has said that it will start selling crude oil to nearby refineries, such as the Dangote Refinery, in naira. The announcement was made by Wale Edun, the Coordinating Minister of the Economy and Minister of Finance, on Monday in Abuja during a meeting with the Implementation Committee.
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A message on the finance ministry’s official X (formerly Twitter) page stated that the purpose of the gathering was to assess the status of important projects. In order to ensure a seamless implementation, important roles for stakeholders were outlined at the conference.
These included the African Export-Import Bank, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and Nigerian Midstream and Downstream Petroleum Regulatory Authority.
“The Implementation Committee meeting on the transition to crude oil sales in naira was led today by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy,” the post stated. “Key initiatives, such as the impending start of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024, were reviewed in the meeting.”
Additionally, according to the Chairman of the Technical Sub-Committee and Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, “the first PMS delivery from Dangote is expected next month under existing agreements.”
The article went on to say that updates were given regarding the Port Harcourt and Dangote refineries, and that starting in November 2024, considerable production increases were anticipated.
The minister underlined the importance of openness and gave the Technical Sub-Committee instructions to complete specifics and draft a report for the President, verifying that his orders are on schedule to be put into effect in September.
Remember that on July 29, the Federal Executive Council granted President Tinubu’s request that NNPC stop selling crude oil to nearby refineries in foreign currency ¹.
The Federal Executive Council gave its approval to provide Nigerian refineries, starting with the Dangote refinery, 450,000 barrels intended for domestic use in exchange for Naira. The action is intended to maintain stability in both the dollar-to-naira exchange rate and the refined gasoline pump price.
