Nigerian government to start selling crude oil to Dangote and other countries in Naira from October

The Federal Government has announced that it will start selling crude oil to local refineries, including the Dangote Refinery, in naira from October 1, 2024.

Minister of Finance and Coordinating Minister for Economic Affairs, Wale Edun, made the announcement at a meeting with the Implementation Committee on Monday in Abuja.

According to a post on the Ministry of Finance’s official X (formerly Twitter) page, the meeting was intended to review progress on key initiatives.

At the meeting, key roles were outlined for stakeholders, including the Nigerian Downstream and Midstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission and the African Export-Import Bank to ensure smooth implementation.

The article reads, “The Minister of Finance and Coordinating Minister for Economic Affairs, Mr Wale Edun, today chaired the Implementation Committee meeting on the transition to naira crude oil sales.

Also read: ASUU gives Nigerian govt 21-day strike notice, says agreement unenforceable

“The meeting reviewed progress on key initiatives, including the commencement of naira payments for crude oil sales to the Dangote Refinery from 1 October 2024.”

Additionally, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, and Chairman of the Technical Sub-Committee reported that “The first PMS shipment from Dangote is expected next month based on existing agreements”.

The post further stated that updates were provided on the Port Harcourt and Dangote Refineries, with a significant increase in production expected from November 2024.

The Minister stressed the need for transparency and directed the Technical Sub-Committee to finalize the details and prepare a report for the President, while confirming that its directives were on track to be implemented from September.

Recall that the Federal Executive Council had on July 29 approved President Tinubu’s proposal for the NNPC to stop selling crude oil to local refineries in foreign currency ¹. The Federal Executive Council approved that 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a model.

This step was taken to ensure the stability of refined fuel prices and the dollar-naira exchange rate.

Nigerian government to start selling crude oil to Dangote and other countries in Naira from October appeared first on Latest Nigeria News | Headlines from Ripples Nigeria.