The Nigerian government has announced the commencement of naira transaction for crude oil as earlier directed by President Bola Tinubu.
This development was communicated by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, as revealed by the ministry via its official X handle.
It was noted that this was 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 statement read.
“Following a meeting of the Implementation Committee, chaired by the Hon. Minister of Finance and Coordinating Minister of the Economy on October 3rd, 2024, to conduct a post-commencement review of the Crude Oil and Refined Products Sales in Naira initiative, the commencement of this strategic initiative was affirmed by key stakeholders.”
“The meeting included the Hon. Minister of State, Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the representative of the Chairman of Dangote Group, the Vice President of Dangote Group, and the management of the Nigerian National Petroleum Company (NNPC), led by the Group Chief Executive Officer (GCEO), Chief Financial Officer (CFO), and Executive Vice President (Downstream),” it read in full.
It would be recalled that the sale of crude oil in naira was set to commence on October 1.
Its commencement had been laced with uncertainty.
In July, President Bola Tinubu approved the sale of crude oil in naira to refineries using Dangote refinery as a pilot.
The commencement was expected to have a major impact on the price of petroleum, although the extent remains to be seen.