The Federal Government of Nigeria has officially commenced the sale of crude oil to Dangote Refinery and other local refineries in the local currency, the naira, as of October 1, 2024. This significant step was disclosed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, in a statement released on Saturday.
The initiative to sell crude oil to the 650,000 barrels-per-day (bpd) Dangote Refinery, among other local refineries, was initially approved by the Federal Executive Council (FEC) in July 2024. Following the approval, transactions in naira were slated to begin in October.
This move marks a critical shift in the nation’s economic and energy strategies, aiming to strengthen local refineries and reduce dependency on foreign exchange for crude oil transactions.
The Ministry of Finance took to its official X (formerly Twitter) account to confirm that the sale of crude oil to local refineries in naira had officially commenced on October 1, 2024. The post emphasized that the government is committed to implementing this policy in line with the FEC’s directive.
“The Honourable Minister of Finance and Coordinating Minister of the Economy has confirmed that, in accordance with the Federal Executive Council’s directive, the sale of crude oil and refined petroleum products in naira officially began on October 1st, 2024.
This marks a significant milestone in Nigeria’s efforts to strengthen its energy sector and economy through local currency transactions,” the statement read.
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A follow-up meeting was held on October 3, 2024, chaired by Wale Edun, to review the initial implementation of this policy. The meeting included key stakeholders who evaluated the progress of the “Crude Oil and Refined Products Sales in Naira” initiative.
Among those present at the meeting were Heineken Lokpobiri, the Minister of State for Petroleum (Oil); Edwin Devakumar, the Vice President of Dangote Group; Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC); and several other government and industry leaders.
“The meeting brought together the Honourable Minister of State for Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, and the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Also in attendance were representatives of the Dangote Group, including the Vice President of the group, and the top management team of the Nigerian National Petroleum Company (NNPC), led by its Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream),” the statement further elaborated.
This strategic move is expected to stimulate the local refining industry, enhance Nigeria’s energy self-sufficiency, and support the government’s broader efforts to stabilize the economy by reducing dependence on foreign currency for oil transactions.
It is also seen as a critical step toward reducing the cost of petroleum products domestically, fostering industrial growth, and ensuring better resource management within the country.