The Federal Government, Monday, announced that it will begin sales of crude oil to Dangote Refinery and other local refineries in Naira from October 1, 2024.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, made the announcement during a meeting with the Implementation Committee on Monday in Abuja. The meeting was the second to be held in seven days.
The Finance Ministry, on its official X handle, explained that the meeting was to review progress on key initiatives.
The Punch reported that at the meeting, key roles were outlined for 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 to ensure smooth implementation.
The post says: “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.”
Also, the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee reported that “The first PMS delivery from Dangote is expected next month under existing agreements.”
Further updates were also provided on the Port Harcourt and Dangote Refineries, with significant production increases expected from November 2024.
Edun underscored the need for transparency and directed the Technical Sub-Committee to finalize details and prepare a report for President Bola Tinubu. The Minister assured that the presidential directive on crude oil sales to local refineries was firmly on course, and that the implementation will commence in September.
The Punch recalled that the Federal Executive Council, FEC, had, at its meeting on July 29, approved President Tinubu’s proposal for NNPC to halt the sale of crude oil to local refineries in foreign currency.
The Council also approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot.
The move, the Council had reasoned, was to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.
Dangote Refinery, at its present level of production, will require 15 cargoes of crude oil per annum.
Responding, the finance minister inaugurated a technical sub-committee tasked with developing the framework for the sale of crude oil to local refineries in naira.