Sales of Crude Oil in Naira to Dangote, Other Buyers Will Commence on October 1

The commencement of crude oil sales in Naira to Dangote Refinery and other Nigerian refineries is scheduled for October 1^st of this year.

This information was disclosed by the esteemed Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a review meeting held in Abuja this afternoon.

The meeting’s purpose was to examine the progress made by the Implementation Committee tasked with developing the necessary procedures to execute President Bola Tinubu’s directive on the Naira Crude sale.

The committeee, which convened its first meeting last week, comprises senior officials from the Nigerian National Petroleum Company Limited (NNPCL), the Central Bank of Nigeria, the Federal Inland Revenue Service, and the Permanent Secretary of the Ministry of Finance, Mrs. Lydia Jafiya.

Additionally, representatives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank, which was involved in a futures crude oil sale arrangement with the NNPCL, were present.

The ”onourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, chaired the Implementation Committee meeting today regarding the transition to Crude Oil Sales in Naira.

The meeting assessed the progress of critical initiatives, particularly the planned initiation of Naira payments for crude oil sales to the Dangote Refinery, set to begin on October 1, 2024, as noted in the official statement.

Additionally, Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, indicated that the first delivery of PMS from Dangote is anticipated next month, in accordance with existing agreements.

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

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

The Federal Executive ”ouncil (FEC) issued a directive on July 29, instructing the Nigerian National Petroleum Company (NNPC) Limited to engage in the sale of crude oil to Dangote Refinery and other local refineries in the domestic currency, the naira, rather than the United States dollar.

This strategic move is aimed at mitigating the strain on the nation’s foreign exchange reserves and ensuring stability in the pump prices of petrol, diesel, and other petroleum products within Nigeria.