Minister affirms Nigeria officially commences sales of crude, refined oil in Naira

*Olawale Edun, Minister for Finance and Coordinating Minister of the Economy, affirms the Nigerian Government’s commencement of the sales of crude oil and refined petroleum products will boost local oil-refining capacity towards reducing dependence on imported fuel while saving the country billions of Dollars for further investments in the economy

Gbenga Kayode | ConsumerConnect

The Federal Government has officially announced the commencement of ground-breaking sales of crude oil and refined petroleum products in Naira, the national currency.

Mr. Olawale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy, who affirmed this development, said the move was in line with the Federal Executive Council’s (FEC) directive.

The Minister stated that the sale of crude oil and refined petroleum products in the local currency officially commenced October 1, 2024, in the West African country.

Edun noted following a meeting of the Implementation Committee, which he chaired to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the stakeholders confirmed the commencement of this strategic initiative in the downstream petroleum sector of the Nigerian economy.

He also disclosed the meeting brought together prominent figures,  including the Honourable 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) Limited, led by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).

Mohammed Manga, Director of Information and Public Relations in the Federal Ministry of Finance, stated the strategic initiative and bold step President Bola Ahmed Tinubu-led Administration has taken is expected to have a lasting impact on Nigeria’s economy, fostering growth, stability, and self-sufficiency, especially as the country continues to navigate the complexities of global markets, this strategic move positions Nigeria for success in the years to come.

We’re working with government to ensure energy security for Nigerians ─Dangote

ConsumerConnect reports the Federal Government’s arrangement falls under the “Crude Oil for Naira” deal, a strategic partnership between the Nigerian Government and Dangote Industries Limited (DIL).

Speaking on the crude deal recently, Alhaji Aliko Dangote, President/Chief Executive (CE) of DIL, and CEO Dangote Petroleum Refinery and Petrochemicals, had confirmed this development in an interview with Bloomberg TV, in the United States (US).

Dangote disclosed the crude oil supply is part of an ongoing agreement with the Federal Government to enable the refinery to process crude locally and produce petrol, diesel, and jet fuel for the domestic market.

The President of Dangote Group said: “We are working towards a solid agreement with the Federal Government that ensures energy security for the country. This means no more fuel queues.

“The government has committed to providing us with crude oil, and in October, they will deliver 12 million barrels, which translates into roughly 390,000 barrels a day.

“We will refine this crude to produce gasoline, diesel, and aviation fuel for the local market. Any surplus will be exported.”

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