Crude Oil Sales in Naira to Dangote and Others Begin October 1 — Edun
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, has announced that crude oil sales to Dangote Refinery and other local refineries will begin on October 1, 2024, in local currency.
Edun made the announcement during a meeting with the Implementation Committee on Monday in Abuja.
In a post on its X (previously Twitter) account, the Finance Ministry stated that the meeting was to examine progress on the transition to crude oil sales in naira.
To ensure successful implementation, the post outlined key roles for stakeholders such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank.
“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, chaired today’s Implementation Committee meeting on the transition to Naira-based crude oil sales.
“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,” a portion of the tweet said.
The Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, Dr. Zacch Adedeji, stated that “the first PMS delivery from Dangote is expected next month under existing agreements.”
According to sources, the Minister emphasised the need of openness and directed the Technical Sub-Committee to finalise specifics and provide a report for the President, certifying that his directions are on track for execution in September.
The Finance Ministry announced that they anticipate large output increases at the Port Harcourt and Dangote Refineries beginning in November 2024.
On July 29, the Federal Executive Council (FEC) authorised the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira, not US dollars.
The Federal Government stated that the action will cut the country’s foreign spending and stabilise the pump prices of petrol, diesel and other items in Nigeria.