The Federal Government has announced the commencement of the sale of crude oil and refined petroleum products in naira starting from October 1, 2024. This decision was made following a directive from the Federal Executive Council and a subsequent review by an implementation committee chaired by the Minister of Finance.
Last month, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency revealed that the Federal Executive Council had approved the sale of crude to local refineries in naira. The plan includes selling 385,000 barrels per day of crude oil to the Dangote refinery, to be paid for in naira. This initiative aims to reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country.
Key stakeholders have confirmed the launch of the “Crude Oil and Refined Products Sales in Naira” initiative, with arrangements already in place for the supply of petrol and diesel in exchange for crude oil paid in naira. The implementation committee has been working closely with NNPC and the Dangote refinery to finalize the modalities for this significant change in the oil sector.
With the naira-for-crude deal now in action, the government expects better management of resources and increased transparency in the oil industry, benefiting both the economy and consumers.