In a historic move aimed at reducing pressure on the Naira, minimizing transaction costs and enhancing the availability of petroleum products, the Federal Government of Nigeria has launched a groundbreaking initiative that allows the sale of crude oil to local refineries and the purchase of petroleum products in Naira.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made this announcement during a press briefing in Abuja following a crucial Technical Sub-Committee meeting on the matter. The Minister, represented by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), revealed that all agreements and modalities have been finalized for the implementation of the Federal Executive Council’s (FEC) approval of this policy.
“Under the leadership of Mr. President, the FEC has approved the sale of crude oil to local refineries and the corresponding purchase of petroleum products in Naira. This initiative is designed to reduce pressure on the Naira, eliminate unnecessary transaction costs, and boost the availability of petroleum products across the country,” the Minister stated.
Edun further explained that since the FEC’s approval, the implementation committee, chaired by the Finance Minister, alongside a technical team, has been working closely with the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery to finalize the operational details of this ambitious project.
“We are pleased to announce that all agreements have been concluded, and the loading of the first batch of Premium Motor Spirit (PMS) from the Dangote Refinery will begin on Sunday, September 15. Additionally, from October 1st, NNPC will commence the supply of approximately 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, with payments to be made in Naira,” he added.
In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market, also to be paid for in Naira. While PMS will exclusively be sold to NNPC, which will then distribute it to various marketers, diesel will be made available to any interested offtakers. All associated regulatory costs, including those from the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will also be settled in Naira.
To ensure a seamless rollout of this initiative, the government is establishing a “one-stop shop” that will coordinate services from regulatory and security agencies, as well as other key stakeholders. This office will be based in Lagos at the NPA headquarters.
The Minister expressed gratitude to all involved for their dedication and patriotism in driving the project forward, and extended a special thanks to President Bola Tinubu for championing this innovative approach. “We assure Mr. President that we are fully committed to realizing his vision for Nigeria’s energy independence and economic prosperity,” he concluded.
This initiative marks a critical milestone in Nigeria’s quest for energy self-sufficiency and economic growth, signaling a new era in the nation’s petroleum sector.
