The Nigerian government has revealed that it will commence selling crude oil to the Dangote Refinery in naira starting from October 1, 2024.

This decision was made known by Wale Edun, the minister of finance, during a meeting with the Implementation Committee in Abuja on Monday.

The announcement was made via a post on the finance ministry’s official X account, which indicated that the meeting focused on reviewing the progress of key initiatives, including the transition to naira-based crude oil sales.

The government has also outlined the roles of several key stakeholders, such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Central Bank of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank, to ensure a smooth transition and effective implementation of this policy.

“The minister of finance and coordinating minister of the economy, Wale Edun, chaired the Implementation Committee meeting today, where progress on transitioning to naira payments for crude oil sales was reviewed. The naira-based sales to the Dangote Refinery are set to begin on October 1, 2024,” the finance ministry stated.

In addition, Zacch Adedeji, the executive chairman of the Federal Inland Revenue Service and chairman of the Technical Sub-Committee, reported that the first delivery of Premium Motor Spirit (PMS) from the Dangote Refinery is expected to occur next month, following existing agreements.

Read also: How Nigeria loses $1,000 per barrel in crude oil exports

This move follows a directive issued by the Federal Government in July, instructing the Nigerian National Petroleum Company (NNPC) to exclusively sell crude oil to the Dangote Refinery in naira. The initiative aims to strengthen the local currency and stimulate domestic economic activities.