FG Begins Sales Of Crude Oil To Dangote, Other Refineries On October 1

Federal Government of Nigeria says it will commence sales of crude oil to Dangote Refinery and other local refineries in local currency beginning from October 1, 2024, as part of strategic moves to put an end to the importation of  Premium Motor Spirit otherwise known as petrol and crash the pump price currently being sold at N630 and as high between N800 and N900 per litre 

Minister of Finance and Coordinating Minister of the Economy, Wale Edun

made this announcement during a meeting with the Implementation Committee on Monday in Abuja.

The Finance Ministry in a post on its X (formerly Twitter) handle, said the meeting was to review progress of the transition to crude oil sales in naira.

Edun in the post, stated that 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 to ensure smooth implementation.

The meeting of the Implementation Committee on the transition to Crude Oil Sales in Naira led by the Minister, reviewed its progress on key initiatives of government and agreed to begin commencement of sales of crude oil to Dangote Refinery and other local refineries in Naira as from October 1, 2024 as stated in the post 

It added 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.”

The Minister was said to have 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.

On the Port Harcourt and Dangote Refineries Finance ministry said significant production increases are expected from November 2024.

Sale of crude to local refineries

The Federal Executive Council (FEC) on July 29 directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira and not in the United States greenback.

The Federal Government said the measure would reduce the strain on the country’s foreign spending and stabilise the pump price of petrol, diesel and other products in Nigeria.

Edu-Biznews recalls that the recent back and forth between Nigeria Petroleum Company Limited and Dangote  Refinery over sales of crude oil to local refineries, which prompted the Federal Executive Council's meeting held in Abuja last month,July, to approve the sales of crude oil to the world single largest Petrol-Chemical Refinery in Lekki Free Trade Zone in Lagos, Nigeria's commercial city and other local refineries in the country