The sales of crude oil to Dangote Refinery and other local refineries in local currency will commence on October 1, 2024, according to the Minister of Finance, Wale Edun. This announcement was made during a meeting with the Implementation Committee on Monday in Abuja, where progress on the transition to crude oil sales in naira was reviewed.
The meeting outlined key roles for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank, to ensure smooth implementation.
The Finance Ministry stated that the Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, Dr. Zacch Adedeji, reported that the first PMS delivery from Dangote is expected next month under existing agreements.
Edun emphasized the need for transparency and directed the Technical Sub-Committee to finalize details and prepare a report for the President, confirming that his directives are on track for implementation from September.
Significant production increases are expected from the Port Harcourt and Dangote Refineries from November 2024. The Federal Executive Council directed the Nigerian National Petroleum Company Limited to sell crude oil to Dangote Refinery and other local refineries in naira, not in US dollars, to reduce the strain on foreign spending and stabilize pump prices.
