The Federal Government has announced plans to begin accepting Naira payments for crude oil sales to the Dangote Refinery and others, starting October 1, 2024.
This move marks a crucial step in Nigeria’s economic transformation.
Additionally, the first delivery of Premium Motor Spirit (PMS) from the Dangote Refinery is scheduled for next month, under current agreements.
This development was confirmed during a key meeting of the Implementation Committee on Crude Oil Sales in Naira, led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in Abuja. The meeting was part of the efforts to implement the Presidential directive aimed at boosting Nigeria’s economic growth.
In an official statement, Mohammed Manga, Director of Information and Public Relations for the Federal Ministry of Finance, said, “The Committee reviewed progress on various initiatives, including the upcoming shift to Naira payments for crude oil sales to Dangote Refinery, beginning October 1, 2024, a major milestone in Nigeria’s economic transformation.”
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chair of the Technical Sub-Committee, confirmed that the first PMS delivery from the Dangote Refinery is expected next month.
The meeting also outlined the roles of key stakeholders like 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 (Afreximbank) in ensuring a smooth implementation of this policy.
Manga also provided updates on the Port Harcourt and Dangote Refineries, noting that significant production increases are expected from November 2024.
The Minister stressed the importance of transparency and urged the Technical Sub-Committee to finalize a report for the President, confirming that preparations for implementation are on schedule for September.
With the progress made by the Implementation Committee and guidance from Mr. Edun, Nigeria is set to transition smoothly to Naira-based crude oil sales.
The collaboration between regulatory bodies and financial institutions will be critical in ensuring a transparent and efficient process.
This shift is expected to have a profound impact on Nigeria’s economic growth and set a new standard for prosperity in the country.
