FG decides; October 1, Dangote buys crude oil with Naira notes, Others included

Dangote Refinery currently needs fifteen cargoes of crude oil yearly.

According to the Federal Government, Dangote Refinery and other local refineries will start buying from October 1, 2024.

Finance Minister and Coordinating Minister of the Economy, Wale Edun, made this announcement during a meeting with the Implementation Committee in Abuja.

The meeting, aimed at reviewing progress on key initiatives, outlined the roles of various stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank.

The goal is to ensure a smooth transition to naira payments for crude oil sales.

Edun emphasized the need for transparency and directed the Technical Sub-Committee to finalize the details and prepare a report for the President, confirming that directives are on track for implementation starting September.

The Federal Executive Council approved the proposal for NNPC to stop selling crude oil to local refineries in foreign currency and instead offer 450,000 barrels meant for domestic use in naira, with Dangote Refinery as a pilot project.

The finance minister also noted that the first PMS delivery from Dangote is expected next month, and significant production increases from the Port Harcourt and Dangote refineries are anticipated from November 2024.

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