In a significant step to strengthen Nigeria’s economy, the Federal Government has started selling crude oil to local refineries, with transactions now taking place in Naira.
The announcement was made via a statement signed by Mohammed Manga, Director of Information and Public Relations. During the briefing, Mr. Edun, represented by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, said, “This initiative will help reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country.”
According to Edun all agreements and arrangements for implementing the Federal Executive Council’s (FEC) approval have been completed. The initial shipment of Premium Motor Spirit (PMS) from the Dangote Refinery is scheduled to start on September 15, 2024. Beginning October 1, the Nigerian National Petroleum Company Limited (NNPCL) will provide around 385,000 barrels of crude oil daily to the Dangote Refinery, with payments processed in Naira. In return, the refinery will deliver PMS and diesel of equivalent value to the local market, also settled in Naira.
“We are creating a comprehensive hub that will bring together services from all regulatory and security agencies, as well as other key stakeholders, to facilitate the effective execution of this initiative,” Mr. Edun stated. This center will be located at the Nigerian Ports Authority (NPA) in Lagos.
The Federal Government thanked President Bola Tinubu for leading this significant initiative in Nigeria’s pursuit of energy independence and economic development.
