The Nigerian government has officially commenced the crude oil-to-naira sales agreement with Dangote Refinery from October 1, 2024.
The announcement was made by the Minister of Finance, Wale Edun, in a statement shared on the Ministry of Finance’s official X account on Saturday.
Mr. Edun stressed that this initiative is in line with the directives of the Federal Executive Council (FEC). He said, “Sales of crude oil and refined petroleum products in Naira have officially commenced from October 1, 2024.”
“Following the launch, key stakeholders convened on October 3, 2024 to conduct a post-launch review of the Crude Oil and Refined Products Sales Initiative in Naira, and the launch of this strategic initiative was confirmed by key stakeholders. .”
The meeting was chaired by Edun and also attended by Prime Minister John Johnson. Minister of State for Petroleum;Special Adviser to the President on Revenue and Energy, Chief Executive of the Nigeria Midstream and Downstream Petroleum Regulatory Authority, Representatives of the Dangote Group and the Nigerian National Petroleum Corporation (NNPC).
“The launch of this strategic initiative has been approved by key stakeholders,” Edun said. “This initiative aims to stabilize the economy and promote the use of local currency in the oil sector.”
Despite the announcement, uncertainty remains regarding the operational effectiveness of post-launch transactions.
However, oil market players and industry analysts say the deal could lead to lower fuel pump prices as local sales in naira could ease currency pressures and benefit Nigeria’s energy supply chain. suggests that it is possible.
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