The Nigerian government has officially commenced the sale of crude oil and refined petroleum products in naira to Dangote Refinery and other local refining companies. This significant move aims to bolster Nigeria's economy and enhance self-sufficiency in the energy sector.
This initiative is part of President Tinubu‘s administration’s broader strategy to promote long-term economic growth and reduce reliance on foreign currency transactions. By facilitating these transactions in naira, the government hopes to stimulate the local economy and encourage more investment in the country’s refining capacity.
The announcement was made in a statement issued by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, on Saturday, October 4, 2024. The initiative marks a pivotal shift in how Nigeria conducts its crude oil and refined product sales, aiming to streamline processes and reduce volatility associated with foreign exchange fluctuations.
The statement quoted Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, who revealed that the sale of these products in naira officially began on October 1, following a directive from the Federal Executive Council (FEC). The decision to move forward with this initiative was reached after extensive discussions and consultations with various stakeholders in the oil and gas sector.
“Following a meeting of the Implementation Committee, chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy to conduct a post-commencement review of the Crude Oil [/b]and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders,” Edun stated in the announcement. This indicates the government's commitment to ensuring a smooth transition into this new sales framework.
“The meeting brought together prominent figures, including the Honourable Minister of State for 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), led by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream),” the statement elaborated, highlighting the collaborative effort involved in this initiative. The gathering of such high-profile officials underscores the importance of this transition for Nigeria's economy and its future in the global oil market.