FG finally reveals update on crude-for naira deal with Dangote Refinery

The Federal Government has announced that it has started selling crude oil and other refined products in naira.

The initiative, which began on October 1, 2024, was revealed without additional information on the contractual agreements and product pricing.

FG Confirms Date Crude-for-Naira Deal With Dangote Refinery, Others Began
Source: UGC

FG launches crude sales in naira

It would be recalled that in September, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency revealed that the Federal Executive Council, led by President Bola Tinubu, had approved the sale of crude oil to local refineries in naira and the purchase of petroleum products in naira.

The committee stated:

“From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira.”

Likewise, Mr. Dare Adekanbi, the Special Adviser on Media to the Chairman of the Federal Inland Revenue Service, confirmed on Sunday that the plan for supplying crude oil to the $20 billion plant in Lekki was still in place.

Crude sales in naira began October 1

A few days ago, indications suggested that the NNPC had not yet begun supplying crude oil in naira to the Dangote Petroleum Refinery, which was scheduled to commence on October 1, 2024.

The situation became more concerning when officials from Dangote and other refineries indicated they were unaware if the deal had begun.

In response, the Ministry of Finance stated in a post on its X handle (formerly Twitter) on Saturday, October 5, 2024, that the deal had already started as planned on October 1.

The ministry stated:

“The Minister of Finance and Coordinating Minister of the Economy announced that, in line with the Federal Executive Council directive, the sale of crude oil and refined petroleum products in naira has officially commenced as of October 1, 2024."

It added that key stakeholders confirmed the start of the strategic initiative after a meeting of the Implementation Committee.

In September, the government clarified that the naira-for-crude initiative would alleviate pressure on the naira, eliminate unnecessary transaction costs, and enhance the availability of petroleum products nationwide.

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Source: Legit.ng