As Nigerians anticipate supply of petrol from the Dangote Refinery, the Federal Government has started selling crude oil to local refineries and buying petroleum products denominated in Naira.
Watchers of the economy hailed the move as capabile of reducing pressure on the Naira, lower extra costs and make fuel more available across the country.
The Federal Ministry of Information and National Orientation on Saturday issued a statement which reads: “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.
“Represented by the Executive Chairman Federal Inland Revenue Service, Dr Zacch Adedeji, the Minister announced the completion of all agreements and modalities for the implementation of the Federal Executive Council 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 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.
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