The Federal Government of Nigeria has confirmed the commencement of crude oil and refined product sales in naira, starting on October 1, 2024. This initiative aims to reduce pressure on the naira and improve the supply of petroleum products in Nigeria.
The Ministry of Finance announced the development via its official X (formerly Twitter) account on Saturday, October 5, 2024, stating, “The sale of crude oil and refined petroleum products in naira has officially commenced as of October 1, 2024.”
The move follows the Federal Executive Council’s directive and a meeting chaired by the Minister of Finance, reaffirming the launch of the initiative. In line with this, the Nigerian National Petroleum Company (NNPC) is set to supply 385,000 barrels per day of crude oil to the Dangote refinery, with payments made in naira.
While government officials have affirmed the start of the initiative, representatives from Dangote and other refineries have stated they were not yet aware of the deal’s progress. The government sees the initiative as a way to eliminate unnecessary transaction costs and strengthen the naira.
Additionally, the deal involves Dangote refinery supplying petrol (PMS) and diesel to the domestic market, with diesel being available to any interested buyer, while PMS will be sold exclusively to NNPC.
