FG Begins Sale Of Crude Oil To Refiners In Naira

The federal government of Nigeria has confirmed the initiation of crude oil sales to local refiners in naira, the nation’s currency.

Wale Edun, the Minister of Finance and Coordinating Minister for the Economy, confirmed this in a statement issued during the weekend.

This development has heightened expectations for reduced fuel prices from Dangote Refinery.

President Bola Tinubu had instructed that crude oil be sold to Dangote in naira as part of efforts to lower the cost of premium motor spirit (PMS), commonly referred to as petrol.

Previously, Dangote had commenced the distribution of petrol products from its 650,000-barrel refinery located in Ibeju-Lekki, Lagos; however, many Nigerians expressed disappointment as this did not lead to a decrease in PMS prices.

The Nigerian National Petroleum Company Limited (NNPCL) had set the price of Dangote PMS at N950 per litre in Lagos, asserting that it acquired the product at N898 per litre from Dangote.

In response, Dangote refuted this claim, stating that prices would further decline following the start of crude sales in naira from the NNPCL.

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The Minister of Finance in a statement confirmed that “Nigeria has officially commenced the sale of crude oil and refined petroleum products in Naira.”

The statement said the in line with the directive of the Federal Executive Council (FEC), the sale of crude oil and refined petroleum products in Naira officially commenced as of October 1,2024.

The statement said, “Following a meeting of the Implementation Committee, Chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy 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 strategic initiative and bold step taken by the President Bola 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.”