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FG unveils plan to boost local refining capacity

Estimated reading time: 2 minutes

In a move aimed at enhancing Nigeria’s refining capacity and reducing reliance on foreign exchange, the Federal Government has announced plans to commence sales of crude oil to Dangote Refinery and other local refineries in naira, effective October 1, 2024.

Finance Minister Wale Edun made the announcement during a meeting with the Implementation Committee on Monday, where key stakeholders were assigned roles to ensure a seamless transition.

The meeting, held in Abuja, reviewed progress on key initiatives, including the upcoming commencement of naira payments for crude oil sales to Dangote Refinery.

According to a post on the finance ministry’s official X page, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission, and African Export-Import Bank will play crucial roles in ensuring smooth implementation.

The post read, “The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, today led the Implementation Committee meeting on the transition to crude oil sales in naira.

“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.”

In a related development, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, and the Chairman of the Technical Sub-Committee revealed that the first PMS delivery from Dangote Refinery is expected next month, under existing agreements.

This move is seen as a significant step towards boosting Nigeria’s energy self-sufficiency and reducing dependence on imported petroleum products.

Mayowa Oladeji
Mayowa Oladeji
Mayowa is a senior writer at NRTC with many years experience as a multimedia journalist and news editor working with a range of high profile media platforms.

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