FG to commence crude oil sales in naira to Dangote, others October 1 – Edun

Edun made the announcement today during a meeting with the Implementation Committee in Abuja.

According to a post by the Finance Ministry on its X (formerly Twitter) account, the meeting focused on reviewing the progress of the transition to crude oil sales in naira.

... highlighted the key roles assigned to stakeholders, including 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, to ensure a smooth implementation process.

“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, chaired the Implementation Committee meeting regarding the transition to crude oil sales in naira.

“The meeting assessed progress on key initiatives, including the upcoming start of naira payments for crude oil sales to Dangote Refinery beginning October 1, 2024,” ... stated in part.

It also mentioned that Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, reported that “the first PMS delivery from Dangote is anticipated next month under existing agreements.”

The Minister emphasized the importance of transparency and instructed the Technical Sub-Committee to finalize the details and prepare a report for the President, confirming that his directives are on track for implementation starting in September.

Regarding the Port Harcourt and Dangote Refineries, the Finance Ministry indicated that significant production increases are expected from November 2024.

In a previous directive on July 29, the Federal Executive Council (FEC) instructed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira instead of U.S. dollars.

The Federal Government stated that this measure aims to alleviate the pressure on the country’s foreign expenditure and stabilize the prices of petrol, diesel, and other products in Nigeria.