The Federal Government (FG) has announced that sales of crude oil to Dangote Refinery and other local refineries will begin on October 1, 2024.
The announcement was made in Abuja on Monday by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee.
Recall that the Federal Executive Council had on July 29 okayed President Tinubu’s proposal for NNPC to halt the sale of crude oil to local refineries in foreign currency.
A post on the official X (formerly Twitter) page of the finance ministry, indicated that the meeting was to review progress on key initiatives.
During the meeting, key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission and the African Export-Import Bank to ensure smooth implementation.
“The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.
“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.”
Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee also reported that “The first PMS delivery from Dangote is expected next month under existing agreements.”
It also stated that updates were provided on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024.
The minister stressed the need for transparency and directed the Technical Sub-Committee to finalize details and prepare a report for the President.
He also confirmed that his directives were underway for implementation from September.
The Federal Executive Council approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot.
The move is to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.
Findings show that Dangote Refinery, at the moment, requires 15 cargoes of crude oil yearly.
In response, the finance minister inaugurated a technical sub-committee tasked with developing the framework for the sale of crude oil to local refineries in naira.
Monday’s meeting marks the second to be held in seven days.
