FG to commence crude oil sale in naira to Dangote refinery October 1

The federal government says the sale of crude oil to the Dangote refinery in naira will commence on October 1.

The ministry of finance, in a statement on Monday, said the decision was made at a meeting with the technical implementation committee led by Wale Edun, minister of finance.

The meeting was on the transition to crude oil sales in naira, according to the statement.

The federal government had, on August 15, inaugurated a technical subcommittee to ensure the smooth implementation of President Bola Tinubu’s directive to sell crude to local refineries in naira.

At the meeting on Monday, the committee reviewed progress on key initiatives — including “the upcoming commencement of Naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024”.

“Key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank (Afreximbank) to ensure smooth implementation,” the ministry said.

“Updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024.”

Also speaking at the meeting, Zacch Adedeji, executive chairman of the Federal Inland Revenue Service (FIRS) and chairman of the technical subcommittee, said the first premium motor spirit (PMS) delivery from Dangote is expected next month under existing agreements.

The Dangote refinery had, on August 14, said it would begin the supply of petrol this month.

In his remarks, Edun stressed the need for transparency and directed the technical subcommittee to finalise the details of the arrangement.

He also asked the committee to prepare a report for Tinubu, confirming that his directives are on track for implementation from September.

On July 29,tThe federal executive council (FEC) had approved a proposal by Tinubu directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote refinery and other refineries in naira.