The Federal Government has announced its commencement of the sale of crude oil to local refineries and the purchase of petroleum products in Naira. This innovative strategy aims to alleviate pressure on the Naira, reduce additional costs, and enhance the availability of fuel.
In a statement released by the Federal Ministry of Information and National Orientation on Saturday, September 14, the government emphasized the significance of this move in contributing to the country’s economic growth.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this development during a meeting on the sale of crude oil to local refineries, as he expressed the government’s intention to eliminate unnecessary transaction costs and improve access to petroleum products in the country.
All necessary agreements and arrangements for the implementation of the Federal Executive Council’s approval regarding the sale of crude oil to local refineries in Naira and the subsequent purchase of petroleum products in Naira have been successfully completed, according to the statement.
The Federal Executive Council, under the leadership of the President, had previously approved the sale of crude oil to local refineries in Naira, an action that is expected to strengthen the economy, reduce pressure on the Naira, and enhance the availability of petroleum products in the country.
Following intensive collaboration between the implementation committee, chaired by the Honorable Minister of Finance, and the technical committee, the details and modalities for the implementation of the FEC’s approval have been worked out in cooperation with the Nigerian National Petroleum Corporation Limited (NNPCL) and Dangote Refinery.
The first batch of Premium Motor Spirit (PMS) from the Dangote Refinery will be loaded and commence supply on Sunday, September 15. From October 1, the NNPC will supply approximately 385,000 barrels per day of crude oil to the Dangote Refinery, and payment will be made in Naira.
In return, the Dangote Refinery will supply the domestic market with an equivalent value of PMS and diesel, which will also be paid for in Naira. Diesel will be available for purchase in Naira from the Dangote Refinery to interested buyers, while PMS will initially be sold to the NNPC, which will then distribute it to various marketers.
All associated regulatory costs, such as those from the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will also be paid in Naira. To ensure the smooth implementation of this initiative, a one-stop shop is being established at the NPA in Lagos, which will coordinate service provision from regulatory agencies, security agencies, and other stakeholders.
The statement expressed gratitude to everyone involved in this milestone achievement and extended appreciation to the President for championing this significant and transformative initiative. The government aims to achieve energy self-sufficiency and spur economic growth through the implementation of this novel strategy.
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