FG Commenced Crude Oil Sales to Refineries in Local Currency

SEATTLE (Oil Monster): The Nigerian Federal Government announced that it has commenced sale of crude oil to Dangote Refinery and other refineries in the local currency, naira, with effect from October 1, 2024. The disclosure came from Wale Edun, the country’s Minister of Finance and Coordinating Minister of the Economy. The crude oil sales to Dangote Refinery was initially authorized by the Federal Executive Council (FEC) in July of this year.

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According to the official statement, sales of refined petroleum products and crude oil formally began on October 1, 2024, in compliance with the FEC's directive. To conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira program, the Implementation Committee met on October 3, 2024. A meeting of stakeholders authorized the Initiative's start as well.

The FEC later accepted President Tinubu's request, made earlier in July of this year, to stop the NNPC from selling crude oil to local refineries in foreign currency. Stabilizing pump prices is the Initiative's main goal. Moreover, it will increase domestic refining capacity, enhancing Nigeria's energy security.