Crude oil sales to Dangote Refinery in naira start October 1 – FG

The Federal Government says it will commence the sale of crude oil to the Dangote refinery in naira on October 1, 2024.

In a post on its official X handle on Monday, the Federal Ministry of Finance said that Mr. Wale Edun, the Minister of Finance, led a meeting with the technical implementation committee that resulted in the decision.

According to Persecondnews, the top item on the meeting’s agenda was the review and progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.

On August 15, the federal government inaugurated a technical subcommittee to ensure the smooth implementation of President Bola Tinubu’s directive to sell crude to local refineries in naira.

The ministry said: “Key roles were outlined for 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), to ensure smooth implementation.

“Updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024.”

Mr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the technical subcommittee, also spoke at the meeting, stating that existing agreements anticipate the first premium motor spirit (PMS) delivery from Dangote next month.

The Dangote refinery had, on August 14, said it would begin the supply of petrol this month.

In his remarks, Edun stressed the need for transparency and directed the technical subcommittee to finalise the details of the arrangement.

He also asked the committee to prepare a report for Tinubu, confirming that his directives are on track for implementation in September.

On July 29, the Federal Executive Council (FEC) approved a proposal by Tinubu directing the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to the Dangote refinery and other refineries in naira.