The Federal Government of Nigeria has announced that the sale of crude oil to Dangote Refinery and other local refineries will begin on October 1st, 2024.
This 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.
According to a post on the official X (formerly Twitter) page of the finance ministry, the meeting was convened to review progress on key initiatives. The roles of various 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 outlined to ensure the smooth implementation of the plan.
The post stated, “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 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.”
Additionally, 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 the Dangote Refinery is expected next month under existing agreements.
The meeting also provided updates on the Port Harcourt and Dangote Refineries, with significant production increases anticipated from November 2024. The minister stressed the importance of transparency and directed the Technical Sub-Committee to finalize details and prepare a report for the President, confirming that the directives are on track for implementation starting in September.
This follows the Federal Executive Council’s approval on July 29th of President Tinubu’s proposal for the 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.
The initiative aims to stabilize the pump price of refined fuel and the dollar-naira exchange rate. Currently, the Dangote Refinery requires 15 cargoes of crude oil annually.
In response, the finance minister established a technical sub-committee to develop the framework for selling crude oil to local refineries in naira. Monday’s meeting was the second held within the past seven days.
