FG Begins Naira Crude Sale To Dangote, Others October 1

Minister of finance and coordinating minister of the Nigerian economy, Wale Edun has said the government would begin the sale of crude oil to Dangote and other local refineries in Naira from October 1 2024.

The minister gave the remarks on Monday at the second meeting of the implementation committee meeting on the transition to crude oil Sales in Naira that was established by President Bola Tinubu.

“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,” the finance ministry said in a statement on its verified X handle.

The  statement said updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024. It however failed to state when the Port Harcourt refinery would commence operation. The Nigerian National Petroleum Company Limited (NNPC) has postponed the operationalisation of the refinery for the sixth time since Mele Kyari took office as GMD of the government owned firm.

Chairman of the Federal Inland Revenue Service, Zacch Adedeji who is also the chairman of the technical sub-committee, reported that the first PMS delivery from Dangote is expected next month under existing agreements.

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The Nigerian authorities had approved that the 450,000 barrels meant for domestic consumption in the oil sector regulatory PIA be offered in Naira to Nigerian refineries, with Dangote refinery as a pilot. The aim is to cut the demand for dollars with a focus on reducing the current high rate of gasoline.

According to the brief note of the meeting that was posted online, key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the African Export-Import Bank to ensure smooth implementation.

The minister emphasised the need for transparency and directed the Technical Sub-Committee to finalise details and prepare a report for the President, confirming that his directives are on track for implementation from September.