The Federal Government of Nigeria has announced a major policy shift, revealing that it will commence the sale of crude oil in naira to the Dangote Refinery and other local refineries starting October 1, 2024.
This decision was disclosed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a meeting with the Implementation Committee in Abuja on Monday.
The announcement aligns with President Bola Tinubu's directive aimed at bolstering the local currency and stimulating domestic economic activities.
The meeting, which focused on reviewing the progress of key initiatives, outlined roles for several stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank (Afreximbank).
These entities are tasked with ensuring a smooth transition and effective implementation of the naira-based crude oil sales policy.
Wale Edun emphasized the need for transparency and directed the Technical Sub-Committee to finalize the details of the arrangement and prepare a report for President Tinubu, confirming that his directives are on track for implementation from September.
"With the implementation committee’s progress, Nigeria is poised to witness a seamless transition to Crude Oil Sales in Naira," Edun stated. He further noted that this move would mark a pivotal milestone in the country’s economic transformation, enhancing Nigeria’s growth and development.
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Technical Sub-Committee, reported that the first delivery of Premium Motor Spirit (PMS) from the Dangote Refinery is expected next month under existing agreements.
The Dangote Refinery, inaugurated on May 22, 2023, in Lekki, Nigeria, is anticipated to be the largest single-train refinery in the world, with a capacity to process about 650,000 barrels of crude oil per day when fully operational.
This initiative follows a directive issued by the Federal Government in July, instructing the Nigerian National Petroleum Company (NNPC) to exclusively sell crude oil to the Dangote Refinery in naira. The policy aims to strengthen the local currency and stimulate domestic economic activities, setting a new standard for economic prosperity in Nigeria.
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