By Lucy Adautin
The Nigerian government has announced the use of naira for crude oil transactions, following earlier instructions from President Bola Tinubu.
This information was disclosed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, through an announcement on the ministry’s official X account.
It was emphasized that this move adheres to the Federal Executive Council’s (FEC) directive.
“The sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024.” the statement read.
“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 meeting included the Hon. 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), 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),” it read in full.
It is worth recalling that the sale of crude oil in naira was scheduled to begin on October 1. However, its start had been clouded with uncertainty.
In July, President Tinubu gave the green light for crude oil to be sold in naira to refineries, with Dangote refinery serving as the pilot project.
The launch is anticipated to significantly affect petroleum prices, though the full extent is yet to be determined.
