Victor EzejaMinister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, has announced that the sale of crude oil in naira to Dangote Refinery and other local refiners has officially kicked off with effect from 1st October.
Edun said the commencement was in line with the Federal Executive Council (FEC) directive.
Join our WhatsApp ChannelThe minister made this known in a statement released via the official X handle of the Ministry of Finance on Saturday.
According to the statement, the Implementation Committee, chaired by the Minister of Finance held a meeting on 3rd October 2024 to review the Crude Oil and Refined Products Sales in Naira initiative.
Prime Business Africa reports that the federal government had announced that the Nigeria National Petroleum Company Limited (NNPCL) would on 1st October, commence the sales of crude oil in naira to local refineries who would in turn, sell refined petroleum products in the local currency.
Statement said: “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 announcement comes as concerns have been raised that the supply of crude oil in naira by the Nigerian National Petroleum Company Limited to the Dangote Petroleum Refinery, was yet to begin as of Thursday, October 3.
Prime Business Africa recalls that President Bola Tinubu had in July 2024 come up with the initiative for NNPCL to sell crude oil in Naira to Dangote Refinery as a way of ensuring the stability of the prices of petroleum products in the country. This was subsequently approved by the Federal Executive Council.
Industry stakeholders including petroleum marketers and refiners had averred that the naira-for-crude deal would help reduce pump prices of petrol across the country.
READ ALSO: Naira-for-Crude Deal Delayed Despite October 1 Deadline
However according to some reports, sources in Dangote Refinery and other domestic refiners said they were yet to receive communication regarding the deal.
Nigerians who had hoped about getting cheaper fuel once Dangote Refinery comes on stream, were heart disappointed when the NNPCL after lfitng refined oetrol from Dangote Refinery, announced further increase in price.
However there is still hope that the naira-for-crude deal would help in reducing the pump price of petrol which is a major contributor to rising cost of things across in the country.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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