The Federal Government has announced that the sale of crude oil to Dangote Refinery and other local refineries will begin on October 1, 2024.
This announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee on Monday in Abuja.
According to a post on the official X (formerly Twitter) page of the finance ministry, the meeting focused on reviewing the progress of key initiatives.
At the meeting, specific roles were assigned to stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank, to ensure a smooth implementation process.
The post stated, “The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.”
“The meeting reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to the Dangote Refinery starting October 1, 2024.”
Additionally, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, and the Chairman of the Technical Sub-Committee reported that “The first PMS delivery from Dangote is expected next month under existing agreements.”
The post also mentioned that updates were provided on the Port Harcourt and Dangote Refineries, with significant production increases anticipated from November 2024.
The minister stressed the importance of transparency and instructed the Technical Sub-Committee to finalize details and prepare a report for the President, ensuring that his directives are on schedule for implementation starting in September.
It is worth noting that on July 29, the Federal Executive Council approved President Tinubu’s proposal for NNPC to stop selling crude oil to local refineries in foreign currency.
The council approved that the 450,000 barrels allocated for domestic consumption be offered in Naira to Nigerian refineries, with the Dangote refinery serving as the pilot project.
This move aims to stabilize the pump price of refined fuel and the dollar-naira exchange rate.
Reports indicate that Dangote Refinery currently requires 15 cargoes of crude oil annually.
In response, the finance minister inaugurated a technical sub-committee to develop a framework for the sale of crude oil to local refineries in Naira.
Monday’s meeting marks the second held in the past seven days.
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