Nigerian Government to Start Selling Crude Oil in Naira to Dangote Refinery from October 1

Nigerian Government to Start Selling Crude Oil in Naira to Dangote Refinery from October 1
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The Nigerian government, led by President Bola Tinubu, has announced plans to sell crude oil to the Dangote Refinery in naira starting October 1, 2024. This move marks a significant shift in the country’s oil industry.

The announcement was made on Monday through a post on the official X (formerly Twitter) account of the Federal Ministry of Finance. The post revealed that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, chaired a meeting of the Implementation Committee, which is overseeing the transition to crude oil sales in naira.

The meeting also highlighted progress on several initiatives, including preparations for the Dangote Refinery to start paying for crude oil in naira from October 1. Additionally, the first delivery of Premium Motor Spirit (PMS) from the refinery is expected next month, according to Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee.

Key stakeholders involved in the transition include the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Central Bank of Nigeria, the Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank. These agencies will play vital roles in ensuring a smooth implementation of the naira-based oil sales.

The meeting also provided updates on the Port Harcourt and Dangote Refineries, with a significant boost in production expected from November 2024.

Minister Edun emphasized the importance of transparency and urged the Technical Sub-Committee to finalize the necessary details and prepare a report for the President. The implementation of these directives is scheduled to begin in September.

The shift in the oil sales policy comes amidst ongoing controversies, with some alleging sabotage of Dangote Refinery’s operations.

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