Naira Crude sale commences Oct 1 - Edun

…Dangote first PMS out Sept.

The sale of crude oil to Dangote Refinery and other Nigerian refineries in Naira will start on October 1, this year.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this in Abuja, at the review meeting of the Implementation Committee set up to work out the modalities for actualising President Bola Tinubu’s directive on the Naira Crude sale.

The committee which started meeting last week consisted of top officials of the Nigerian National Petroleum Company Limited (NNPCL), Central Bank of Nigeria, Federal Inland Revenue Service, the Permanent Secretary of the Ministry of Finance, Mrs. Lydia Jafiya.

Others were representatives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian Upstream Petroleum Regulatory Commission and the African Export-Import Bank which was involved in a futures crude oil sale arrangement with the NNPCL

According to a statement by the ministry’s Director of Information and Public Relations, Mr. Mohammed Manga, , “The Committee reviewed progress on key initiatives, including the upcoming commencement of Naira payments for crude oil sales to the Dangote Refinery starting from October 1, 2024, marking a significant milestone in Nigeria's economic transformation.

 

“Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Technical Sub-Committee, reported that the first PMS delivery from Dangote is expected next month under existing agreements.  

 

“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.

 

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

 

“The Minister emphasised the need for transparency and directed the Technical Sub-Committee to finalize details as well as prepare a report for the President, confirming that his directives are on track for implementation from September

 

“With the Implementation Committee's progress and  Minister Edun's guidance, Nigeria is poised to witness a seamless transition to Crude Oil Sales in Naira. The collaboration among stakeholders, including regulatory bodies and financial institutions, will ensure a transparent and efficient implementation process. 

 

“As the country moves towards this significant economic milestone, the impact on Nigeria's growth and development is expected to be profound, setting a new standard for economic prosperity.”

 

Following President Tinubu’s directive, the Federal Executive Council had approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, starting with Dangote Refinery.

However, with a 650, 000 daily refining capacity, it remains unclear how the $20 billion refinery would source all of its feedstock, as the controversy of the sale of crude to the company by International Oil Companies operating in the country persists.