Nigeria begins crude oil sale in Naira to Dangote Refinery
The Nigerian government has officially launched its Naira-for-crude sale agreement with Dangote Refinery, effective October 1, 2024.
This announcement was made by the Minister of Finance, Wale Edun, in a statement shared on the Ministry of Finance’s official X account on Saturday.
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, chaired by Edun, included the Hon. Minister of State, Petroleum (Oil),
Special Advisers to the President on Revenue and Energy, Nigerian Midstream and Downstream Petroleum Regulatory Authority’s Chief Executive, Representatives from Dangote Group and Nigerian National Petroleum Company (NNPC).
“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.”
Despite the announcement, uncertainty remains regarding the operational effectiveness of the deal post-launch.
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.
