The naira-for-crude initiative, which has already commenced, would mean that crude would now be sold to the Dangote refinery and others in naira. In return, the Dangote refinery would supply PMS (petrol) and diesel of equivalent value to the domestic market, also in naira.
According to Edun, the sale of crude oil in naira, which the Federal Executive Council initially approved in July, officially commenced on October 1, 2024, in line with the Federal Executive Council (FEC) directive.
Edun disclosed that key stakeholders supported the commencement of the strategic initiative following a meeting of the implementation committee chaired by him to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira.
“The strategic initiative and bold step taken by the President Bola Ahmed Tinubu-led Administration is expected to have a lasting impact on Nigeria’s economy, fostering growth, stability, and self-sufficiency, especially as the country continues to navigate the complexities of global markets, this strategic move positions Nigeria for success in the years to come,” the statement read.
The stakeholder meeting was attended by the Hon. Minister of State, Petroleum (Oil), Heineken Lokpobiri, the Vice President of Dangote Group, Edwin Devakumar, and the Group Chief Executive Officer (GCEO) of NNPC, Mele Kyari, among others.
The committee chairman and head of FIRS commented on the initiative saying, “Diesel will be sold in naira by the Dangote refinery to any interested off-taker. PMS will only be sold to NNPC. Then NNPC will then sell to various marketers for now. All associated regulatory costs (NPA, NIMASA, etc.) will also be paid in naira.
Economic experts explained that the initiative if implemented successfully, will alleviate pressure on the naira, eliminate unnecessary transaction costs, and enhance the availability of petroleum products nationwide.
