Sunday, October 6, 2024 -The federal government of Nigeria has officially commenced the sale of crude oil and refined petroleum products in naira, marking a significant shift in the nation's energy market.
On Saturday, October 6, Wale Edun,
Minister of Finance and Coordinating Minister of the Economy, announced that
the sale, in line with a directive from the Federal Executive Council (FEC),
began on October 1, 2024.
In a statement, Edun said the move
was affirmed after a post-commencement review meeting by the Implementation
Committee, which was formed to oversee the rollout of the initiative. The
meeting involved key stakeholders, including the Minister of State for
Petroleum, the Special Advisers to the President on Revenue and Energy, as well
as top executives from the Nigerian National Petroleum Company (NNPC) and
Dangote Group.
"The strategic initiative and
bold step taken by President Bola Tinubu’s administration is expected to have a
lasting impact on Nigeria’s economy, enhancing growth, stability, and
self-sufficiency," Edun stated.
The decision to sell crude oil in
naira is seen as part of the administration’s broader efforts to strengthen the
local currency and reduce dependency on foreign exchange. It is also expected
to position Nigeria for economic resilience amid global market complexities.
The federal government had initially
approved the sale of crude oil to Dangote Petroleum Refinery and other
refineries in naira during a July 29 FEC meeting. The shift is anticipated to
start with refineries that produce petrol, according to a previous statement by
the Crude Oil Refinery-owners Association of Nigeria (CORAN).
As of October 1, Nigeria has fully
implemented this initiative, with the Nigerian Ports Authority (NPA)
facilitating coordination among stakeholders to ensure the smooth sale of crude
oil to the Dangote refinery and other refineries in naira.
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