Nigerian govt begins Naira-for-crude sale with Dangote Refinery

• Edun said the commencement of the swap deal was in line with the Federal Executive Council, FEC directive

The Nigerian government said it has begun the Naira-for-crude sale deal with Dangote Refinery from October 1, 2024.

The Minister of Finance, Wale Edun, announced the commencement of the initiative in a statement shared on his X page on Saturday.

Edun said the commencement of the swap deal was in line with the Federal Executive Council, FEC directive.

He said that stakeholders held a meeting on October 3rd, 2024 to review the implementation of the deal.

“The Hon. 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 1st, 2024.

“Following a meeting of the Implementation Committee, chaired by the Hon. Minister of Finance and Coordinating Minister of the Economy on October 3rd, 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 included the Hon. Minister of State, 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), the representative of the Chairman of Dangote Group, the Vice President of Dangote Group, and the management of the Nigerian National Petroleum Company (NNPC), led by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream)”.

This comes amid concerns and uncertainties that beset the initiative after the October 1, 2024 kickoff date.

Recall that to ensure the stability of the price of Petrol in the Country, President Bola Ahmed Tinubu in July 2024 directed NNPCL to sell crude in Naira to Dangote Refinery.

Petroleum marketers and crude refiners had hinted that the deal may lead to the reduction of Fuel pump prices which stood between N950 and N1,100 per liter