Federal Government has announced the start of crude oil sales to local refineries and the purchase of petroleum products in Naira. This pivotal development was revealed in a statement from the Federal Ministry of Information and National Orientation on Saturday, September 14.
The statement outlines the government’s strategy: “In a landmark initiative designed to alleviate pressure on the Naira, eliminate extraneous transaction costs, and enhance the availability of petroleum products, the Federal Government has embarked on selling crude oil to local refineries and purchasing petroleum products in Naira.”
Mr. Wale Edun, the Honourable Minister of Finance and Coordinating Minister of the Economy, shared the news with PulseNets during a briefing in his Abuja office, following a Technical Sub-Committee meeting on the crude oil sale initiative. Represented by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), the Minister revealed the successful completion of all agreements related to the Federal Executive Council’s (FEC) approval for this project.
Mr. Edun’s statement noted: “The FEC, under the guidance of Mr. President, has endorsed the sale of crude to local refineries in Naira, along with the purchase of petroleum products in Naira. This endeavor aims to reduce the Naira’s strain, remove unnecessary transaction costs, and improve the distribution of petroleum products nationwide.”
He added that the implementation committee, led by the Honourable Minister of Finance, along with technical experts, has worked diligently with NNPCL and Dangote Refinery to finalize the operational details. The Minister expressed satisfaction, announcing that the first batch of Premium Motor Spirit (PMS) from Dangote Refinery would begin loading on Sunday, September 15.
PulseNets learned that starting October 1, NNPC will supply approximately 385kbpd of crude oil to Dangote Refinery, with transactions conducted in Naira. In return, Dangote Refinery will provide PMS and diesel of equivalent value to the domestic market, also paid for in Naira. Diesel will be available for purchase by any interested buyer, while PMS will be sold exclusively to NNPC, which will then distribute it through various marketers.
Furthermore, all related regulatory fees, including those for NPA and NIMASA, will be handled in Naira. To facilitate this initiative, a one-stop shop will be established at NPA, Lagos, to streamline service provision from regulatory, security, and other stakeholders, ensuring seamless implementation.
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“We extend our gratitude to all those who have contributed to this effort,” Mr. Edun told PulseNets. “We especially appreciate Mr. President for driving this innovative initiative and assure him of our commitment to realizing his vision.”
This initiative represents a significant step toward Nigeria’s energy self-sufficiency and economic advancement. However, the effectiveness of these measures in addressing the issue of vote-buying remains to be seen.
