By Abiola Olawale
The Federal Government has officially commenced the sale of crude oil to the Dangote Refinery, owned by the Nigerian business mogul Alhaji Aliko Dangote, in the local currency, the Naira.
This was made known by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Edun, in a press statement, revealed that the sales in Naira began since on October 1, 2024.
According to the Minister, the development has also been confirmed by the Hon. Minister of State, Petroleum (Oil), Heineken Lokpobiri, the Vice President of Dangote Group, Edwin Devakumar, NNPC boss, Mele Kyari, among others.
The statement reads in part: “The Hon. Minister of Finance and Coordinating Minister of the Economy announced that, in line with the Federal Executive Council (FEC) directive, the sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024.
“Following a meeting of the Implementation Committee, chaired by the Hon. Minister of Finance and Coordinating Minister of the Economy on October 3rd, 2024, to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders.
“The meeting included the Hon. Minister of State, Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the representative of the Chairman of Dangote Group, the Vice President of Dangote Group, and the management of the Nigerian National Petroleum Company (NNPC), led by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream). “
The New Diplomat reports that the sale of crude oil to the 650,000 bpd refinery was initially approved by the Federal Executive Council (FEC) in July, with transactions set to begin this month.
The Council approved that the 450,000 barrels allocated for domestic use will now be sold in Naira to Nigerian refineries, with Dangote Refinery serving as the pilot project.
This measure is intended to stabilize both the pump price of refined fuel and the dollar-naira exchange rate.
It would be recalled that the Dangote Refinery had earlier commenced production of the Premium Motor Spirit (PMS) also known as fuel.
