The Minister of Finance, Wale Edun, has announced that the Nigerian government has launched a naira crude oil sales agreement with Dangote Refinery effective October 1, 2024.
The minister announced this in a statement posted on the Ministry of Finance’s official account X on Saturday.
Edun said the launch was in line with the directives of the Federal Executive Council (FEC).
He said the two parties held a meeting on October 3, 2024 to review the implementation of the agreement.
“The Honourable.
The Minister of Finance and Coordinating Minister for Economic Affairs announced that, as per the directive of the Federal Executive Committee (FEC), the sale of crude oil and refined petroleum products in naira officially commenced on October 1, 2024.
“The decision to launch this strategic plan followed a meeting of the Implementation Committee chaired by the Honorable Minister of Finance and Coordinating Minister for Economic Affairs to conduct a post launch review of the initiative to sell crude oil and refined products in naira on October 3, 2024. The initiative was confirmed by key stakeholders.
The meeting was also attended by the Honorable Minister, Minister of State for Petroleum (Petroleum), Special Adviser to the President on Revenue, Special Adviser to the President on Energy, Director-General of the Nigerian Midstream Petroleum Regulatory Agency (NMDPRA), Acting Chairman of Dangote Group, Vice President, and the management of the Dangote Group and the Nigerian National Petroleum Corporation (NNPC) headed by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO) and Executive Vice President (Downstream).” This comes amid uncertainty surrounding the agreement taking effect after the inauguration date of October 1, 2024.
Recall that President Bola Ahmed Tinubu in July 2024 directed the NNPCL to sell naira crude oil to Dangote Refinery to ensure stability in petrol prices in the country.
Oil traders and crude refiners had suggested that the agreement could lead to a reduction in petrol prices which currently range between N950 and N1,100 a litre.