ABUJA (ChatnewsTV) — In a significant move to reduce pressure on the Naira and enhance the availability of petroleum products, the Federal Government has officially commenced the sale of crude oil to local refineries, with transactions conducted entirely in Naira.
This groundbreaking initiative, aimed at fostering energy self-sufficiency and reducing unnecessary transaction costs, was announced in a statement released by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance.
According to the statement, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed that the initiative follows the Federal Executive Council (FEC) approval under President Bola Tinubu’s leadership. Edun, represented by Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), noted that the new system is a “landmark move” designed to stabilize the country’s foreign exchange market.
“The sale of crude oil to local refineries in Naira, and the corresponding purchase of petroleum products in Naira, will help reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country,” the statement added.
The statement further explained that from October 1, the Nigerian National Petroleum Company Limited (NNPC) will supply around 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, with payments made in Naira. In return, the Dangote Refinery will provide Premium Motor Spirit (PMS) and diesel of equivalent value to the domestic market, also to be paid for in Naira. Diesel will be sold to any interested buyer, while PMS will be sold exclusively to NNPC, which will then distribute it to marketers.
“The loading of the first batch of PMS from the Dangote Refinery will commence on Sunday, September 15,” the statement said, emphasizing the smooth collaboration between government agencies and private sector stakeholders.
In a bid to ensure the effective implementation of the initiative, the statement announced the creation of a one-stop shop at the Nigerian Ports Authority (NPA) in Lagos. This center will coordinate regulatory services from agencies such as NPA, NIMASA, and security bodies. Furthermore, all regulatory costs associated with the crude and product sales will also be settled in Naira.
The statement concluded by thanking President Tinubu for his support, stressing that the initiative will mark a major milestone in Nigeria’s journey towards energy self-sufficiency and economic stability.
