Nigeria has officially begun selling crude oil in naira to Dangote Refinery Limited, with the idea that this will cut imports and pressure on US dollar spending, among other things.
In a historic move, Nigeria has officially begun selling crude oil and processed petroleum products in Naira. In a statement, the Honourable Minister of Finance and Coordinating Minister of the Economy announced that, in accordance with a Federal Executive Council (FEC) mandate, the sale of crude oil and refined petroleum products in Naira has officially begun on October 1, 2024.
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, key stakeholders confirmed the start of this strategic initiative, Edun stated.
This will allow Dangote Refinery to purchase crude oil in local currency, with the goal of decreasing foreign exchange spending on crude oil imports from other countries.
The meeting brought together prominent figures, including the Honourable Minister of State, Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, and the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Others are 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).
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.
The move is expected to foster 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.
