FG Commences Crude Oil Sales to Dangote Refinery, Others in Naira

The Federal Government has revealed that crude oil sales to Dangote Refinery and other local refineries in naira commenced on October 1, 2024.

This was confirmed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, in a statement released on Saturday.

The Federal Executive Council (FEC) had approved the sale of crude oil to the 650,000 barrels-per-day Dangote Refinery in July, with transactions scheduled to begin in October.

In an official post on X (formerly Twitter), the government confirmed that sales of crude to local refineries in naira had commenced as planned on October 1.

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

According to the statement, the meeting included the 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), and 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 statement added.

On 29 July, the FEC approved President Tinubu’s proposal to stop the sale of crude oil by the Nigerian National Petroleum Corporation (NNPC) to local refineries in foreign currency.

The Council agreed that the 450,000 barrels allocated for domestic use would now be sold to Nigerian refineries in naira, with Dangote Refinery chosen as the pilot project for this initiative.

This move aims to stabilise both the pump price of refined fuel and the dollar-naira exchange rate.

A recent report highlighted that Dangote Refinery requires 15 cargoes of crude oil annually, of which the NNPC will supply four.