The Federal Government has announced that it will commence the sale of crude oil to the Dangote Refinery and other local refineries in naira starting October 1, 2024.
The decision was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee in Abuja on Monday.
The announcement was made public through a post on the official X (formerly Twitter) page of the Ministry of Finance, which highlighted the review of progress on key initiatives and the roles of various stakeholders involved in the implementation.
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“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 read. “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.”
The meeting also involved key agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Central Bank of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank, all tasked with ensuring a smooth transition to the new payment system.
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Additionally, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, provided updates on the expected delivery of Premium Motor Spirit (PMS) from the Dangote Refinery next month under existing agreements. Significant production increases from the Port Harcourt and Dangote refineries are anticipated to start in November 2024.
Minister Edun emphasized the importance of transparency in the process and directed the Technical Sub-Committee to finalize the details, ensuring that all directives from President Bola Tinubu are on track for implementation by September 2024.
This initiative follows the Federal Executive Council’s approval on July 29 of President Tinubu’s proposal for the Nigerian National Petroleum Company (NNPC) to halt the sale of crude oil to local refineries in foreign currency. Instead, the 450,000 barrels of crude oil meant for domestic consumption will be sold in naira, starting with the Dangote Refinery as a pilot project.
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The move is aimed at stabilizing the pump price of refined fuel and the dollar-naira exchange rate. The Dangote Refinery, which currently requires 15 cargoes of crude oil annually, will be the first to implement this naira-based payment system.
Monday’s meeting was the second in a series held within a week to ensure the successful execution of this critical economic policy.