By Enyichukwu Enemanna
Authorities in the oil-rich most populous black nation, Nigeria have announced that sale of crude oil to the first private refinery in the country, Dangote Refinery in local currency, the Naira will commence Oct. 1
“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the 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,” the Minister of Finance and Coordinating Minister of the Economy, the Ministry said in a post on X on Monday, formerly called Twitter after a meeting between the Minister, Wale Edun and Implementation Committee.
The meeting was to review progress of the transition to crude oil sales in Naira, the ministry said.
According to the social media post, key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the African Export-Import Bank to ensure smooth implementation of the deal.
This comes after the resolution of rift between the refinery owned by Africa’s richest man, Aliko Dangote and regulatory authorities who accused him of refining low quality oil.
Dangote had also alleged that efforts by his refinery to source for crude oil locally was being frustrated, accusing the regulators of preferring to sell to IOCs and in dollars.
The Federal Executive Council (FEC) had on July 29 directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira and not in foreign currency.
The ministry added that the Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, Dr. Zacch Adedeji, reported that “the first PMS delivery from Dangote is expected next month under existing agreements.”
The Minister was said to have emphasized the need for transparency and directed the Technical Sub-Committee to finalize details and prepare a report for the President, confirming that his directives are on track for implementation from September.
