Nigeria has officially commenced the sale of crude oil and refined petroleum products in Naira.
A statement from the Ministry of Finance on Saturday said Minister of Finance, Wale Edun, made this announcement.
The initiative earlier approved by the Federal Executive Council (FEC) began on October 1, 2024.
Speaking after a post-commencement review meeting, Edun disclosed that key stakeholders has assured of smooth commencement of the strategic initiative.
Last month, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency revealed that President Bola Ahmed Tinubu had given the green light for crude oil to be sold to local refineries in Naira.
This decision, according to the committee, will also apply to the purchase of petroleum products.
According to the committee, from October 1, 2024, the Nigerian National Petroleum Company (NNPC) had commenced the supply of approximately 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, with payments made in Naira.
This partnership is expected to reshape Nigeria’s oil and gas landscape.
The government had previously outlined that the initiative would reduce pressure on the Naira, eliminate unnecessary transaction costs, and ensure steady supply of petroleum products across the country.
It is also expected to improve the country’s macroeconomic indicators, including foreign exchange reserves.
Chairman of the technical committee and FIRS boss, Zacch Adedeji, had explained that under the initiative, crude oil would be sold to the Dangote Refinery in exchange for refined petroleum products such as petrol and diesel.
The products would then be supplied to the domestic market for distribution, with payments also made in Naira.
“Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker while PMS will only be sold to NNPC, which will then distribute it to various marketers,” Adedeji explained.
The meeting solidified the operational framework agreed by the stakeholders including Minister of State for Petroleum (Oil), the Special Adviser to the President on Revenue, and that of Energy, aa well as the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives of Dangote Group and NNPC.
