In a significant effort to alleviate pressure on the Naira, minimize unnecessary transaction costs, and enhance the accessibility of petroleum products, Federal Government has successfully commenced the sale of crude oil to local refineries, along with the corresponding acquisition of petroleum products in Naira.

This information was shared by Wale Edun, the Honourable Minister of Finance and Coordinating Minister of the Economy shortly after the meeting of the Technical Sub-Committee focused on selling crude oil to local refineries in Naira.

Represented by Zacch Adedeji, the Chairman of Federal Inland Revenue Service (FIRS), the Minister said all agreements and arrangements for the implementation of the Federal Executive Council’s (FEC) approval regarding the sale of crude oil to local refineries in Naira, as well as the corresponding purchase of petroleum products in Naira, have been finalized.

He said, “Recall that the FEC under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.
This initiative will help reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve availability of petroleum products in the country
Since then, the implementation committee chaired by the Hon. Minister of Finance and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval.

“I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September.

“From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira.
Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now.
All associated regulatory costs (NPA, NIMASA, etc.) will also be paid for in Naira.

“We are also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in NPA, Lagos.

“We thank everyone for the hard work and patriotism exhibited over the last couple of weeks.

“We would sincerely like to thank Mr. President for championing this novel initiative and would like to assure Mr. President that he can count on us to implement his vision”, the Minister said.
This initiative marks a significant milestone in Nigeria’s journey towards energy self-sufficiency and economic growth.”