FG Unveils Timeline for Crude Oil Sales to Dangote in Naira

The Nigerian government has announced that starting October 1, 2024, it will sell crude oil to Dangote Refinery and other local refineries in Naira. Finance Minister Wale Edun shared this news during a meeting with the Implementation Committee in Abuja, where the roles of various stakeholders were defined to ensure a seamless transition.

The meeting assessed progress on key initiatives, including the switch to Naira payments for crude oil sold to Dangote Refinery. Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, along with the Chairman of the Technical Sub-Committee, noted that the first delivery of Premium Motor Spirit (PMS) from Dangote is anticipated next month under current agreements.

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The session also covered updates on the Port Harcourt and Dangote Refineries, with expectations of substantial production increases beginning in November 2024. Minister Edun highlighted the importance of transparency and instructed the Technical Sub-Committee to finalize the details and prepare a report for the President, confirming that the implementation plan is on schedule for September.

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This decision follows the Federal Executive Council’s approval of President Tinubu’s proposal to shift crude oil sales to Naira for local refineries, starting with Dangote Refinery as the initial pilot. The initiative aims to stabilize fuel prices and manage the dollar-to-Naira exchange rate, with Dangote Refinery needing 15 cargoes of crude oil annually.