News Highlights:
- The FG’s committee has finalized an agreement with the Dangote Petroleum Refinery to start distributing Premium Motor Spirit (petrol) in September 2023.
- Minister of Finance, Wale Edun, highlighted the roles of key stakeholders in the industry emphasizing transparency and progress on government initiatives.
The Federal Government’s committee, established to facilitate the implementation of crude oil sales to local refineries in naira, has finalised an agreement with the Dangote Petroleum Refinery to begin the distribution of Premium Motor Spirit (commonly known as petrol) in September this year.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who announced this during a meeting with the Implementation Committee on Monday in Abuja also disclosed that the sale of crude oil to Dangote Refinery and other local refineries will commence on October 1, 2024.
According to a post on the finance ministry’s official X (formerly Twitter) page, the meeting was to review progress on key initiatives.
Key roles were outlined for 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 smooth implementation.
The post read, “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.”
Also at the meeting, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, reported that the first PMS delivery from Dangote is expected next month under existing agreements.
Key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the African Export-Import Bank to ensure smooth implementation.
Updates on the Port Harcourt and Dangote Refineries were also provided, with significant production increases expected from November 2024.
The Honourable Minister emphasized the need for transparency and directed the Technical Sub-Committee to finalize details and prepare a report for the President, confirming that his directives are on track for implementation from September.
Recall that the Federal Executive Council had on July 29 okayed President Tinubu’s proposal for NNPC to halt the sale of crude oil to local refineries in foreign currency.
The Federal Executive Council approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot, a move aimed at ensuring the stability of the pump price of refined fuel and the dollar-naira exchange rate.
