FG to begin sale of crude to Dangote Refinery in naira from October 1 –Edun

To advance the Presidential directive for crude oil sales in naira, aimed at boosting Nigeria’s economic growth and development, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, chaired a pivotal meeting yesterday in Abuja with the implementation committee on crude oil sales in naira.

The meeting focused on expediting the transition to naira-based crude oil transactions, marking a critical step in Nigeria’s economic transformation. Among the key initiatives reviewed was the planned commencement of Naira payments for crude oil sales to the Dangote Refinery, set to begin on October 1, 2024. This landmark shift is expected to play a significant role in stabilising Nigeria’s economy and strengthening its currency.

Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Technical Sub-Committee, provided updates on the progress. He confirmed that the first Premium Motor Spirit (PMS) delivery from the Dangote Refinery is anticipated next month under the current agreements. This development represents a major milestone in the government’s drive to increase local production and reduce dependency on foreign exchange for crude oil sales.

The meeting also identified the critical roles of key stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank (Afreximbank), in ensuring a seamless and transparent implementation process.

Further updates were provided on the progress at both the Port Harcourt and Dangote Refineries, with significant production increases expected by November 2024. These advancements are expected to bolster Nigeria’s refining capacity and contribute to the success of the Naira Crude Oil Sales Initiative.

Edun highlighted the importance of transparency throughout the process and directed the Technical Sub-Committee to finalize the details and prepare a comprehensive report for the President. This report will confirm that the Presidential directives are on track for implementation starting in September 2024.

Under the leadership of and with the progress of the Implementation Committee, Nigeria is on the verge of a historic economic transition. The collaboration between regulatory bodies, financial institutions, and key stakeholders will ensure a smooth and efficient transition to naira-based crude oil sales.