The Federal Government has reached a crucial agreement with the Dangote Petroleum Refinery, setting the stage for the distribution of Premium Motor Spirit (PMS) to begin in September 2024.
In a related development, the government will initiate the sale of crude oil to Dangote and other domestic refineries in naira starting October 1, 2024.
These decisions were made during a meeting chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. The meeting brought together key industry stakeholders to assess the progress of ongoing initiatives and ensure the seamless implementation of the new policies.
The agenda also included a review of the Port Harcourt and Dangote Refineries, with both facilities expected to ramp up production significantly by November 2024.
The Ministry of Finance shared details of the meeting on its official Twitter page, stating:
“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.”
https://x.com/FinMinNigeria/status/1825532610300252282?t=wNuuWm60JYVIXOjLf3ad4w&s=19
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Technical Sub-Committee, also confirmed that the first batch of PMS from the Dangote Refinery is slated for delivery next month under the existing agreement.
This new approach signals a significant shift in Nigeria’s oil sector, with the government keen on enhancing local refinery operations and bolstering the naira’s role in international trade. The upcoming months will be critical as these strategies begin to take effect.
