FG finally begins crude sales in naira to Dangote Refinery

The Federal Government has officially begun the sale of crude oil in naira, in line with a directive from President Bola Tinubu.

This update was shared by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, through a statement on the ministry’s official X account.

The shift to naira transactions aligns with a directive from the Federal Executive Council (FEC).

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According to the statement, “The sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024.”

It continued, “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 review meeting involved significant stakeholders, including the Minister of State for Petroleum (Oil), the Special Advisers to the President on Revenue and Energy, top executives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives from the Dangote Group, and leadership from the Nigerian National Petroleum Company (NNPC), including its Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream).

Recall that back in July, President Tinubu approved the sale of crude oil in naira, with the Dangote refinery chosen as the pilot for the initiative.

The long-term impact of this move on petroleum prices remains to be seen.