NNPCL to Commence Sale of Crude Oil in Naira to Dangote October 1

Ndubuisi Francis in Abuja 

The Nigerian National Petroleum Company Limited (NNPCL) will begin the sale of crude oil to Dangote Refinery on October 1, the Federal Government disclosed on Monday.

According to a post in the official X (formerly Twitter) handle of the Federal  Ministry of Finance, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, made the disclosure at a meeting of the implementation committee in Abuja.

Edun had, last week, inaugurated a Technical Sub-Committee tasked with developing the framework for the sale of crude oil to local refineries in naira. 

However, the tweet was silent on when sales to other local refineries in naira will commence.

The post was captioned ‘HM Wale Edun Presides Over Meeting on Crude Oil Sales in Naira Implementation.’

It read: “The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today (Monday) led the Implementation Committee meeting on the transition to Crude Oil Sales in Naira. 

“The meeting reviewed progress on key initiatives, including the upcoming commencement of Naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.

“Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service @FIRSNigeria and Chairman of the Technical Sub-Committee, reported that the first PMS delivery from Dangote is expected next month under existing agreements.”

The tweet noted that key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Central Bank of Nigeria (CBN), Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the African Export-Import Bank (Afreximbank) to ensure smooth implementation. 

Updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024. 

The tweet further disclosed that Edun emphasised the need for transparency and directed the technical sub-committee to finalise details and prepare a report for the president, confirming that his directives are on track for implementation from September.

The Federal Executive Council (FEC) on July 29 approved President Tinubu’s proposal for NNPCL to end the sale of crude oil to local refineries in foreign currency, culminating in the approval that the 450,000 barrels meant for domestic consumption be offered in naira to Nigerian refineries, with Dangote refinery as a pilot.

Following this development, Edun inaugurated a technical sub-committee last Thursday in Abuja, chaired by him.

The body also comprises the Permanent Secretary, Federal Ministry of Finance, Mrs. Lydia Shehu Jafiya; Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji; as well as representatives from the NNPCL, CBN, Afrexim Bank, Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

It has the critical role of crafting a robust template that will ensure the successful implementation of the crude oil sale in naira initiative.

While inaugurating the committee Thursday in Abuja, Edun stated that the initiative aligns with the presidential directive, aimed at revolutionizing the energy sector by reducing reliance on crude oil exports and fostering local expertise.

The inauguration of the technical sub-committee was preceded by a meeting of  stakeholders last Tuesday where government officials and representatives of local refineries, including the Dangote Refinery, met to discuss the implementation of the strategic directive.