Rita Odafe
The Nigerian government has announced the initiation of crude oil sales along with other refined products in naira.
This program started on October 1, 2024, although specific details regarding contracts and pricing have not been disclosed.
The Ministry of Finance shared this announcement via its social media account on Saturday.
The statement included the following: “The Minister of Finance and Coordinating Minister of the Economy confirmed that, following directives from the Federal Executive Council, sales of crude oil and refined products in naira officially began on October 1, 2024.
“On October 3, 2024, an Implementation Committee meeting was held to review the commencement of the Crude Oil and Refined Products Sales in Naira initiative, and it was supported by key stakeholders.”
Recently, the Technical Sub-Committee on Domestic Sales of Crude Oil had reported that the Federal Executive Council, led by President Bola Tinubu, has authorized the sale of crude to local refineries in naira, along with the purchase of petroleum products in the same currency.
“Starting October 1, NNPC will supply approximately 385,000 barrels per day of crude oil to the Dangote refinery, with payments made in naira,” the committee stated.
Additionally, Mr. Dare Adekanbi, Special Adviser on Media for the Federal Inland Revenue Service Chairman, confirmed when asked on Sunday that the plan to supply crude oil to the $20 billion Lekki-based plant is still on track.
However, representatives from Dangote and other refineries noted on Thursday that they were unaware if the deal had been initiated.
When contacted for updates regarding the naira-for-crude agreement between NNPC and Dangote, officials from the Dangote refinery, Nigerian Upstream Petroleum Regulatory Commission, Federal Ministry of Finance, and NNPC did not provide comments.
In September, the government explained that the naira-for-crude initiative is expected to alleviate pressure on the naira, remove unnecessary transaction fees, and enhance the availability of petroleum products nationwide.
“Since the initiative was introduced, the implementation committee, headed by the Minister of Finance, has worked diligently alongside NNPC and Dangote refinery to finalize the operational details following the FEC’s approval,” stated Adedeji.
As confirmed, crude will be sold to Dangote in naira starting October 1, and in return, the Dangote refinery will deliver petrol and diesel of equivalent value to the local market, also payable in naira.
“Diesel will be sold in naira by the Dangote refinery to any interested buyer, while petrol will be sold only to NNPC, which will then distribute it to various marketers for the time being. All regulatory fees (NPA, NIMASA, etc.) will also be paid in naira. We are creating a one-stop shop to ensure seamless service from all regulatory, security agencies, and stakeholders for the effective implementation of this program.”
The statement also noted that the meeting included several key officials, such as the Minister of State for Petroleum, Heineken Lokpobiri, Special Advisers to the President on Revenue and Energy, Zaccheus Adedeji and Olu Verheijen, the CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Engr. Farouk Ahmed, and representatives from the Dangote Group and the Nigerian National Petroleum Company.
