THE Nigerian government has officially launched its Naira-for-crude sale agreement with Dangote Refinery, effective October 1, 2024.
The Minister of Finance and Coordinating Minister of the Economy announced that, in line with the Federal Executive Council (FEC) directive, the sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1, 2024.
Edun emphasised that the initiative aligns with the directive from the Federal Executive Council (FEC). “The sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024,” he stated.
“Following the launch, key stakeholders convened on October 3, 2024, to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders.”
The meeting, which solidified the operational framework, brought together notable figures including the Minister of State for Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives of the Dangote Group, and top management of the NNPC, led by the Group Chief Executive Officer (GCEO).
This strategic initiative, introduced by President Bola Ahmed Tinubu’s administration, is poised to have far-reaching impacts on Nigeria’s economy. As the country navigates the challenges of global energy markets, the naira-for-crude plan is seen as a critical step in fostering economic growth, stability, and self-sufficiency.
It is expected to reduce the nation’s reliance on foreign exchange transactions for crude oil sales, ultimately positioning Nigeria for long-term success in the global energy landscape.
“The commencement of this strategic initiative was affirmed by key stakeholders,” Edun noted. “This initiative aims to stabilise our economy and enhance local currency usage in the oil sector.”
However, petroleum marketers and industry analysts have suggested that the deal could lead to a reduction in fuel pump prices as local sales in Naira may ease currency pressures and benefit Nigeria’s energy supply chain.
