Crude oil sales to Dangote, others to begin October — Minister

• Published On: 19 August 2024 at 19:38

The Federal Government has announced that crude oil sales to the Dangote Refinery and other local refineries will begin on October 1, 2024.

This was disclosed in a statement issued by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee in Abuja on Monday, according to the ministry's official Twitter account.

To ensure smooth implementation, key roles were outlined for stakeholders such as 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.

The post read, "The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, led today's Implementation Committee meeting on the transition to crude oil sales in naira.

"The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024."

Meanwhile, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, and the Chairman of the Technical Sub-Committee announced that "the first PMS delivery from Dangote is expected next month under existing agreements."

The statement also provided updates on the Port Harcourt and Dangote refineries, which are expected to increase production significantly beginning in November 2024.

The minister emphasised the importance of transparency and instructed the Technical Sub-Committee to complete specifics and prepare a report to ensure that the President's directives are carried out as planned beginning in September.

Recall that on July 29, the Federal Executive Council approved President Tinubu's proposal for NNPC to stop selling crude oil to local refineries in foreign currency.

The Federal Executive Council approved providing 450,000 barrels of Naira for domestic use to Nigerian refineries, beginning with the Dangote refinery.

The initiative aims to keep refined fuel pump prices and the dollar-naira exchange rate stable.

Monday's meeting is the second in a seven-day span.