CRUDE PURCHASE PRODUCT SALES IN NAIRA TRANSACTION KICKS OFF

The Federal Government  says it has successfully initiated the sale of crude to local refineries as well as corresponding purchase of petroleum products in Naira in a bid to reduce pressure on the local currency, eliminate unnecessary transaction costs, and improve availability of petroleum products.

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

The minister who was represented by the Executive Chairman Federal Inland Revenue Service (FIRS) Dr Zacch Adedeji, 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.

“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

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.

We are 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.

We thank everyone for the hard work and patriotism exhibited over the last couple of weeks.

We would sincerely like to thank Mr. President for championing this novel initiative and would like to assure Mr. President that he can count on us to implement his vision”, the Minister said.

This initiative became necessary following concerns over pressure on the Naira and rising cost of fuel for domestic consumption coupled with the altercation between the Oil and Gas regulators and the management of the Dangote refinery.