FG begins crude oil sales in naira to Dangote, other refineries October 1

The Federal Government has announced that the sale of crude oil to Dangote Refinery and other local refineries will start on October 1, 2024.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the announcement during a meeting with the implementation committee on Monday in Abuja.

At the meeting, key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank, to ensure smooth implementation.

Also, a post on the ‘X’ account of the finance ministry read, “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.” It also stated that updates were provided on the Port Harcourt and Dangote Refineries, with significant production increases expected from November 2024.

The minister emphasised the need for transparency and directed the Technical Sub-Committee to finalise details and prepare a report for the President, confirming that his directives are on track for implementation from September.

Recall that the Federal Executive Council had, on July 29, approved President Tinubu’s proposal for NNPC to halt the sale of crude oil to local refineries in foreign currency.

The Federal Executive Council approved that the 450,000 barrels meant for domestic consumption be offered in naira to Nigerian refineries, using the Dangote refinery as a pilot.

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The move is to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate. Findings show that Dangote Refinery, at the moment, requires 15 cargoes of crude oil yearly.

In response, the finance minister inaugurated a technical sub-committee tasked with developing the framework for the sale of crude oil to local refineries in naira. Monday’s meeting marks the second to be held in seven days.