The Federal Government has announced that it will begin making payments in Naira for crude oil sales to the Dangote Refinery and other entities starting October 1, 2024.
This marks a significant milestone in Nigeria’s economic transformation.
Additionally, it has been revealed that the first delivery of Premium Motor Spirit (PMS) from the Dangote Refinery is anticipated in September, according to existing agreements.
The decision was reached on Monday during a key meeting of the Implementation Committee on Crude Oil Sales in Naira, chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, at his office in Abuja.
This meeting underscored a crucial step toward fulfilling the Presidential directive aimed at bolstering Nigeria’s economic growth and development.
In a statement, Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, said, “the Committee reviewed progress on major initiatives, including the upcoming implementation of Naira payments for crude oil sales to the Dangote Refinery starting from October 1, 2024.
This represents a significant milestone in Nigeria’s economic transformation.”
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Technical Sub-Committee, reported that the first PMS delivery from Dangote is expected next month, according to the existing agreements.
Key roles 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)—were outlined to ensure smooth implementation.
Manga also noted that updates on the Port Harcourt and Dangote Refineries indicated significant production increases are expected from November 2024.
The Minister emphasized the importance of transparency and instructed the Technical Sub-Committee to finalize the details and prepare a report for the President, ensuring that the directives are on track for implementation from September.
With the progress made by the Implementation Committee and Mr. Edun’s guidance, Nigeria is set to experience a smooth transition to Naira payments for crude oil sales.
The collaboration among stakeholders, including regulatory bodies and financial institutions, will ensure a transparent and efficient implementation process.
This economic milestone is expected to have a profound impact on Nigeria’s growth and development, setting a new standard for economic prosperity.