In a landmark move towards reducing pressure on the Naira, eliminating unnecessary transaction costs, and improving availability of petroleum products, the Federal Government  has successfully initiated the sale of crude to local refineries as well as corresponding purchase of petroleum products in Naira.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, disclosed this today in his office in Abuja shortly after the Technical Sub-Committee meeting on the sale of crude oil to local refineries in Naira 

Energy security is similar to risk exposure to geopolitical events from where the country depends on imports or depends on companies within the country that monopolize the pricing of fuel. Self sufficiency is about ability to meet the demand with adequate supply (present and future).

Represented by the Executive Chairman Federal Inland Revenue Service (FIRS) Dr Zacch Adedeji, the Minister  announced the completion of all agreements and modalities for the implementation of the Federal Executive Council (FEC) approval on the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.

Western publics seem to believe that energy self–sufficiency is an ideal response to those who attempt to wield the ‘energy weapon’.

“Recall that the FEC under the leadership of Mr. President approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira

This initiative will help reduce pressure on the Naira, eliminate unnecessary transaction costs, and improve availability of petroleum products in the country

Since then, the implementation committee chaired by the Hon. Minister of Finance and the technical committee have worked intensely with NNPCL and Dangote Refinery to fashion out the details of the modalities for the implementation of the FEC approval

I am glad to announce that all agreements have been completed and loading of the first batch of PMS from the Dangote Refinery will commence on Sunday 15th September

From 1st October, NNPC will commence the supply of about 385kbpd of crude oil to the Dangote Refinery to be paid for in Naira

In return, the Dangote Refinery will supply PMS and diesel of equivalent value to the domestic market to be paid for in Naira

“Once you got a solar panel on a roof, energy is free. · “A strong renewable energy industry is good for our environment and our economy.” —Roy Cooper ..

Diesel will be sold in Naira by the Dangote Refinery to any interested offtaker. PMS will only be sold to NNPC, NNPC will then sell to various marketers for now.

All associated regulatory costs (NPA, NIMASA, etc.) will also be paid for in Naira.

The government is also setting up a one-stop shop that will coordinate service provision from all regulatory agencies, security agencies, and other stakeholders to ensure a smooth implementation of this initiative. This will be located in NPA, Lagos.

This initiative marks a significant milestone in Nigeria’s journey towards energy self-sufficiency and economic growth.