The sale of crude oil to Dangote Refinery and other local refineries in local currency will commence on 1 October 2024, according to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

Edun made this announcement during a meeting with the Implementation Committee on Monday in Abuja.

The Ministry of Finance, in a post on its X (formerly Twitter) handle, said the meeting was held to review the progress of the transition to crude oil sales in naira.

The post noted that key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank, to ensure smooth implementation.

“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.

“The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting on 1 October 2024,” the post read in part.

It further stated that the Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, Dr Zacch Adedeji, reported that “the first PMS delivery from Dangote is expected next month under existing agreements.”

The Minister emphasised the need for transparency and directed the Technical Sub-Committee to finalise details and prepare a report for the President, confirming that his directives are on track for implementation from September.

Regarding the Port Harcourt and Dangote Refineries, the Ministry of Finance stated that significant production increases are expected from November 2024.

On 29 July, the Federal Executive Council (FEC) directed the Nigerian National Petroleum Company (NNPC) Limited to sell crude oil to Dangote Refinery and other local refineries in naira instead of in US dollars.

The Federal Government stated that this measure would reduce the strain on the country’s foreign exchange reserves and stabilise the pump prices of petrol, diesel, and other petroleum products in Nigeria.