The Federal Government has finalized an agreement with Dangote Petroleum Refinery for the rollout of petrol in September 2024, with crude oil sales to local refineries commencing October 1, 2024.
This announcement was made by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during a meeting with the Implementation Committee in Abuja on Monday.
The key purpose of the meeting was to review progress on the initiative to transition crude oil sales to local refineries from foreign currency to naira. Edun highlighted that the transition would begin with Dangote Refinery as the pilot project.
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The meeting outlined the roles of various 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.
According to updates shared on the finance ministry’s official X page, the meeting also revealed that the first delivery of petrol from Dangote Refinery is expected next month. Significant production increases are anticipated at both the Port Harcourt and Dangote Refineries starting November 2024.
The initiative, approved by the Federal Executive Council on July 29, 2024, aims to stabilize fuel pump prices and the dollar-naira exchange rate by shifting the sale of 450,000 barrels of crude oil designated for domestic use to naira.
In response to recent concerns from local refineries about the delay in naira-based transactions, the finance minister emphasized transparency and directed the Technical Sub-Committee to finalize details and prepare a report for the President. This meeting was the second held in a week to address these issues.
