The Federal Government has reached an agreement with the Dangote Petroleum Refinery for the rollout of petrol in September. The sale of crude oil to Dangote Refinery and other local refineries will commence on October 1, 2024. The Minister of Finance, Wale Edun, announced this during a meeting with the Implementation Committee on Monday in Abuja.
The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery. The first PMS delivery from Dangote is expected next month under existing agreements. Updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024.
The Federal Executive Council had previously approved President Tinubu’s proposal for NNPC to halt the sale of crude oil to local refineries in foreign currency. Instead, the 450,000 barrels meant for domestic consumption will be offered in naira to Nigerian refineries, using the Dangote refinery as a pilot. This move aims to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.
Dangote Refinery requires 15 cargoes of crude oil yearly. The Technical Sub-Committee has been directed to finalize details and prepare a report for the President, confirming that his directives are on track for implementation from September. Local refineries have yet to start buying crude oil in naira, but the Crude Oil Refiners Association of Nigeria has written letters to the NNPC and held meetings to that effect.
