The Federal Government has announced that the sale of crude oil to the Dangote Refinery in naira will commence on October 1, marking a significant shift in the country’s oil trade policies.
In a statement released on Monday, the Ministry of Finance confirmed the decision following a strategic meeting with the Technical Implementation Committee, led by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
The move aligns with the government’s broader strategy to bolster the nation’s local currency and reduce dependency on foreign exchange in key sectors. According to the ministry, the shift from dollar-denominated transactions to naira payments is intended to strengthen the economy and increase the stability of the naira.
The statement also emphasized that this initiative is part of a larger effort to promote local content and enhance the domestic economy through key industrial partnerships. The Dangote Refinery, which is poised to become Africa’s largest oil refinery, has been positioned as a critical player in the country’s journey toward self-sufficiency in petroleum products.
The meeting, chaired by Minister Wale Edun, also involved key stakeholders from the oil and gas industry, as well as top officials from relevant government agencies. The discussions focused on the technical modalities of the new payment framework, and the mechanisms to ensure a seamless transition by the set date.
Industry experts have lauded the development, noting that it could lead to a more resilient and independent Nigerian economy. The sale of crude oil in naira is expected to set a new precedent in the local refining landscape while also boosting the country’s foreign reserves through reduced outflows for oil-related transactions.
As the October 1 start date approaches, further guidelines and details are expected to be released to ensure all stakeholders are adequately informed and prepared for the operational changes.
This policy shift reflects the Federal Government’s commitment to deepening economic reforms, fostering industrial growth, and achieving greater financial autonomy in Nigeria’s critical sectors.
