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Naira-for-crude initiative kicked off October 1 — Edun

Wale Edun, Minister of Finance and Coordinating Minister of the Economy, has announced that crude oil and refined petroleum products will be sold in naira beginning October 1, 2024.

Edun posted this update on his official X handle on Saturday.

This initiative comes after the Implementation Committee, chaired by Edun, met to conduct a post-commencement review of the program.

The launch of this strategic initiative was confirmed by key stakeholders, demonstrating widespread support for the transition to naira sales in the crude oil and refined products markets.

The statement read, "The Hon. Minister of Finance and Coordinating Minister of the Economy announced that, in accordance with the Federal Executive Council (FEC) directive, the sale of crude oil and refined petroleum products in Naira has officially begun 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."

According to the statement, the meeting was attended by the Minister of State for 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, the representative of the Chairman of Dangote Group, the Vice President of Dangote Group, and the management of the Nigerian National Petroleum Company, led by the Group Chief Executive Off

In August, AMBusiness reported that the Federal Executive Council approved President Tinubu's proposal to sell crude oil to Dangote Refinery and other upcoming refineries in naira.

The federal government's landmark announcement aims to stabilize fuel prices and the dollar-naira exchange rate.

The Federal Executive Council's new directive will permit the sale of 450,000 barrels of crude oil designated for domestic consumption to Nigerian refineries in naira, with Dangote Refinery serving as the pilot for this initiative.

This intervention aims to eliminate the need for international letters of credit, saving the country billions of dollars that it would otherwise spend on importing refined fuel.

On Monday, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency confirmed that NNPC's supply of crude in naira to Dangote Refinery will begin on Tuesday, October 1, 2024.

On September 13, 2024, the committee announced that the Federal Executive Council, led by President Bola Tinubu, had approved the sale of crude to local refineries in naira, as well as the purchase of petroleum products in naira.

"From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira," according to the committee.

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