- FG Sets October 1 Timeline To Commence Selling
After an initial hiccup, hopes appears to be in the horizon on when Dangote Refinery and other local refineries will begin to buy crude oil in local currency.
The Federal Executive Council (FEC) had on July 29 directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to all local refineries in naira and not in the United States dollar.
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.
However, since the announcement was made, the local refineries have raised alarm that they have been unable to purchase the crude in naira as directed triggering fears that it might just be another mere talk.
Addressing the issue during a meeting with the Implementation Committee on Monday in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun disclosed that it will commence on October 1, 2024.
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.
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.
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“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to Crude Oil Sales in Naira.
“The meeting reviewed progress on key initiatives, including the upcoming commencement of Naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024,” the post read in part.
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.”
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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.
