The Nigerian government will start naira-based crude oil sales to the Dangote Refinery on October 1, 2024. This initiative aims to strengthen the naira and stimulate domestic economic activities. Key stakeholders, including the Central Bank of Nigeria, will ensure a smooth transition and effective implementation.
The Nigerian government has officially announced that it will begin selling crude oil to the Dangote Refinery in naira starting October 1, 2024. This decision, revealed by Finance Minister Wale Edun during a meeting with the Implementation Committee in Abuja, marks a significant shift in the country’s oil sales strategy.
The announcement was made via a post on the finance ministry’s official X account, emphasizing the meeting’s focus on the transition to naira-based crude oil sales. This move aims to bolster the local currency and stimulate domestic economic activities.
Minister Edun outlined the roles of key stakeholders involved in the initiative, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Central Bank of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank. These agencies are expected to facilitate a smooth transition and effective implementation of the policy.
Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service and head of the Technical Sub-Committee, announced that the first delivery of Premium Motor Spirit (PMS) from the Dangote Refinery is anticipated to occur next month, following existing agreements.
This initiative follows a directive from the Federal Government in July, instructing the Nigerian National Petroleum Company (NNPC) to exclusively sell crude oil to the Dangote Refinery in naira. The government views this policy as a crucial step toward strengthening the naira and reducing reliance on foreign currency in oil transactions.
