THE sales of crude oil to the Dangote Refinery in naira will begin on October 1, 2024, the minister of finance and coordinating minister of the economy, Wale Edun, has said.
Edun disclosed this at the implementation committee meeting on the transition to crude oil sales in naira in Abuja on Monday, August 19, according to a statement posted on the ministry’s official X handle.
“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,” Edun said.
In addition, the executive chairman of the Federal Inland Revenue Service (FIRS) and the chairman of the technical sub-committee, Zacch Adedeji, hinted that the Dangote Refinery was likely to deliver its first petrol product in September.
“The first PMS delivery from Dangote is expected next month under existing agreements,” Adedeji said.
At the meeting, key roles were outlined for stakeholders, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Central Bank of Nigeria (CBN), the Nigerian Upstream Petroleum Regulatory Commission, and the African Export-Import Bank.
Although the roles were not disclosed, the involvements were aimed at ensuring a smooth implementation of crude oil sales to local refineries.
“The minister emphasised 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,” the statement added.
President Bola Tinubu had on July 29, directed the Nigerian National Petroleum Company Limited (NNPCL) to sell crude to Dangote refinery and other upcoming refineries in naira.
He approved 450,000 barrels meant for domestic consumption for the Dangote refinery.
The directive came after the Federal Executive Council (FEC) intervened in the accusations and counter-accusations between the Dangote refinery and the regulatory authorities in the oil sector over the selling of crude to the refinery.
The ICIR reports that management of the Dangote refinery has lamented not getting crude oil supply to its refinery, forcing the company to source crude from the United States and other countries to serve its 650,000-capacity nameplate refinery.
In a related development, the publicity secretary of the Crude Oil Refiners Association of Nigeria (CORAN), Eche Idoko, noted there were uncertainties around the regime of supplies, sales, and pricing of PMS, the reason why the domestic refineries have not started getting crude in naira, The ICIR reported.