The Federal Government has directed the Nigerian National Petroleum Company (NNPC) Limited to commence the sale of crude oil to local refineries in naira.
Recall that this development is coming after the Federal Executive Council (FEC) approved the sale of crude oil to Dangote and other local refineries in naira.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, chaired an implementation committee meeting on October 3 to review the Crude Oil and Refined Products Sales in Naira initiative.
The meeting was attended by key stakeholders, including the Minister of State, Petroleum (Oil), the Special Adviser to the President on Revenue, and the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
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This move is expected to positively impact the domestic fuel supply chain and enhance transparency in the oil sector.
The NNPC is prioritizing the supply of naira-denominated crude oil to the Dangote Refinery in the first phase of the naira-for-crude scheme.
In a statement, the Federal Ministry of Finance said, “The Hon Minister of Finance and Coordinating Minister of the Economy announced that, in line with the Federal Executive Council (FEC) directive, the sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024”.
This development is a significant step towards enhancing the transparency and efficiency of the oil sector in Nigeria.
The use of naira for crude oil sales is expected to reduce the pressure on the US dollar and enhance the value of the naira.
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In a related development, the FEC has also approved the sale of refined petroleum products to the domestic market in naira.
This move is expected to reduce the cost of petroleum products and enhance the overall efficiency of the downstream sector.
The Federal Government has assured that it will continue to monitor the implementation of this policy and make necessary adjustments to ensure its success.
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