The federal government has announced that the sale of crude oil to the Dangote refinery in naira will begin on October 1.
The ministry of finance, through a statement released on Monday, said the decision was made at a meeting with the technical implementation committee led by the minister of finance, Wale Edun.
The meeting was based on the conversion to crude oil sales in naira, as revealed by the statement.
On August 15, the federal government instituted a technical subcommittee to see to the smooth implementation of President Bola Tinubu’s directive to sell crude to refineries in the country in naira.
At the meeting on Monday, the committee analyzed progress on crucial initiatives — including “the upcoming commencement of Naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024”.
“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,” the ministry said.
“Updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024.”
Whilst speaking at the meeting, the executive chairman of the Federal Inland Revenue Service (FIRS) and chairman of the technical subcommittee, Zacch Adedeji, stated that the first premium motor spirit (PMS) delivery from Dangote is expected next month under current agreements.
The Dangote refinery had, on the 14th of August, stated that it would start the supply of petrol this month.
In his own comments, the minister of finance emphasized on the need for transparency and ordered the technical subcommittee to finalise the details of the arrangement.
Edun also tasked the committee to prepare a report for the president, confirming that his directives are on track for implementation from September.
The federal executive council (FEC), on July 29, approved a proposal by President Tinubu directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote refinery and other local refineries in naira.