
The Federal Government has commenced the sale of crude oil to Dangote Refinery and other local refineries in naira, starting on October 1, 2024. This marks a significant shift in Nigeria’s energy and economic policies, moving away from dollar transactions for domestic crude oil sales.
This development was announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, through an official statement. The sale to the 650,000 barrels-per-day Dangote Refinery, which was greenlit by the Federal Executive Council (FEC) in July, is now underway.
A post on the Ministry of Finance’s official X (formerly Twitter) account confirmed that as of October 1, crude oil sales to Nigerian refineries are now conducted in the local currency.
“The Hon. Minister of Finance and Coordinating Minister of the Economy announced that, following the directive of the Federal Executive Council (FEC), the sale of crude oil and refined petroleum products in naira has officially begun as of October 1st, 2024,” the post read.

Following the launch of the initiative, a review meeting was held on October 3, chaired by Minister Wale Edun, to evaluate the progress. The statement confirmed that key stakeholders, including representatives from the Dangote Group and the Nigerian National Petroleum Corporation (NNPC), participated in the discussions.
Among those in attendance were the Minister of State for Petroleum (Oil), Heineken Lokpobiri, the Vice President of Dangote Group, Edwin Devakumar, NNPC’s Group Chief Executive Officer, Mele Kyari, and other top officials from the petroleum industry and government.
Background Context In July, the Federal Executive Council approved President Bola Tinubu’s proposal to stop selling crude oil to local refineries in foreign currency. The decision, which includes Dangote Refinery as the pilot project, mandates that the 450,000 barrels allocated for domestic refining be sold in naira.
This strategic shift is aimed at stabilizing both the cost of refined fuel at the pump and the exchange rate between the naira and the U.S. dollar. By reducing reliance on foreign currency transactions, this policy seeks to relieve pressure on Nigeria’s foreign exchange reserves, contributing to a more stable exchange rate.
Reports indicate that Dangote Refinery alone will need 15 crude oil cargoes annually, four of which will be supplied by the NNPC.
Key Implications The Federal Government’s move to sell crude oil to domestic refineries in naira carries significant potential benefits. One of the primary objectives is to stabilize fuel prices, which could lead to more affordable and predictable costs for consumers.
Additionally, conducting transactions in local currency is expected to reduce the strain on Nigeria’s foreign exchange reserves, thereby stabilizing the naira and curbing inflation. This policy also encourages the growth of local refining capacities, decreasing reliance on fuel imports and saving billions of dollars that could be funneled into other sectors of the economy.
Finally, the increase in local refining capacity will bolster Nigeria’s energy security, ensuring a more reliable and self-sufficient fuel supply chain for the country.
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