Edun, Lokpobiri, Kyari, Others Meet, Conduct Implementation Review Of Naira Crude Oil Sale To Dangote

The Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun has met with the Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobiri and the Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd Mele Kyari to review the implementation of the Naira for crude oil initiative of the Federal government

The meeting, held at the boardroom of the finance minister, was also attended by the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Farouk⁩ Ahmed, the
Chief Financial Officer of NNPC Umar Ajiya, and the NNPC Ltd Executive Vice President (Downstream), Mr. Adedapo Segun.

Also in attendance is the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief the representative of the Chairman of Dangote Group, the Vice President of Dangote Group among others.

During the meeting, the finance minister announced that, in line with the Federal Executive Council (FEC) directive, the sale of crude oil and refined petroleum products in Naira has officially commenced as of October 1st, 2024.

The meeting also provided an opportunity to conduct a post-commencement review of the crude oil and refined products sales in naira initiative,

President Bola Tinubu extended an offer of support to the Dangote Refinery by proposing that NNPC Ltd sell crude to the refinery in Naira, providing a valuable lifeline.

To maintain the stability of fuel prices and the exchange rate between the dollar and the Naira, THE WHISTLER had reported that the Federal Executive Council accepted a suggestion put forward by Tinubu during the meeting in August.

The proposal involves selling crude oil to Dangote Refinery and other new Refineries in Naira.

The FEC had also agreed to make available 450,000 barrels for local consumption, which will be offered to Nigerian refineries in Naira, with the Dangote Refinery being the initial test.

The exchange rate will remain constant throughout this transaction.

Based on the approval, THE WHISTLER had reported that only the volume that is equivalent to domestic consumption would be billed in Naira.

The implication of this is that only the Nigerian National Petroleum Company will sell crude oil to Dangote Naira as the International Oil Companies are not covered by the arrangements.