The Nigerian government has announced that the sale of crude oil to the Dangote Refinery and other local refineries in naira will commence on October 1, 2024. This decision aims to ease the country’s foreign spending and stabilize fuel prices, including petrol and diesel.
During a meeting with the Implementation Committee on August 19, 2024, in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the timeline. He stated, “The transition to crude oil sales in naira is on track, with payments set to begin in October.”
The meeting reviewed the progress of this initiative and outlined key roles for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank.
The Federal Executive Council had earlier directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to local refineries in naira, a measure aimed at reducing strain on the country’s foreign exchange reserves.
Edun emphasized the need for transparency, instructing the Technical Sub-Committee to finalize the details and prepare a report for the President. The first delivery of Premium Motor Spirit (PMS) from Dangote under the existing agreements is expected next month. The Ministry of Finance also indicated that significant production increases from the Port Harcourt and Dangote refineries are anticipated by November 2024.
