Relief is on the way for Nigerians as the sales of crude oil to Dangote Refinery and other local refineries is expected to commence October 1, 2024.
The sale of crude oil to local refineries in Naira, analysts posit, would significantly reduce the pump price of petroleum products.
According to a post on the official X (formerly Twitter) page of the Finance Ministry, the announcement stems from the meeting of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun with the Implementation Committee Monday in Abuja.
The meeting was to review progress on key initiatives.
The Federal Executive Council on July 29 okayed President Tinubu’s proposal for NNPC to halt the sale of crude oil to local refineries in foreign currency.
The Federal Executive Council (FEC) approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using Dangote refinery as a pilot.
The move is to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.
In response, the finance minister inaugurated a technical sub-committee tasked with developing the framework for the sale of crude oil to local refineries in naira.
Industry watchers say Dangote Refinery would require 15 cargoes of crude oil yearly to run at optimum capacity.
“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,” the statement on X read.
Also, the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee said: “The first PMS delivery from Dangote is expected next month under existing agreements.”
The minister emphasised the need for transparency and directed the Technical Sub-Committee to finalise details and prepare a report for the President, confirming that his directives are on track for implementation from September.
There were also updates on the Port Harcourt and Dangote Refineries with significant production increases expected from November 2024.
Present at the meeting were Nigerian Midstream and Downstream Petroleum Regulatory Authority, Central Bank of Nigeria, Nigerian Upstream Petroleum Regulatory Commission and the African Export-Import Bank.
…NNPCL targets 2mbpd crude Dec
In a related development, the NNPC Limited Monday released its 2023 Audited Financial Statement (AFS), declaring a net profit of N3.297 trillion at the close of the financial year which ended in December 2023, an increase of over N749 billion (28%) when compared to the 2022 profit of N2.548trillion.
In a world press conference held at the NNPC Towers in Abuja, the Chief Financial Officer of the company, Mr. Umar Ajiya, said the release of the AFS was a testament to the company’s commitment to transparency and accountability.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.
Ajiya added that posting such impressive returns demonstrates NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the company’s shareholders.
Explaining that the NNPC Ltd will announce Initial Public offer (IPO) once the shareholders and board make a decision, Ajiya also debunked claims on subsidy payment, saying the company was only taking care of PMS importation shortfall between it and the federation.
Speaking earlier, the chairman of the NNPC Ltd Board, Chief Pius Akinyelure, said the excellent performance came as the fruit of the PIA 2021, the commitment of the board, management and staff of the company.
Akinyelure added that the shareholders of the company have since approved a final dividend of N2.1trn in line with PIA 2021 provisions.
In her remarks at the briefing, the executive vice president, Upstream, Mrs. Oritsemeyiwa Eyesan, said with improvements witnessed as a result of the renewed vigour in the war against crude oil theft and pipeline vandalism, NNPC Ltd was targeting 2million barrels per day crude oil production by the end of the year.
On the current fuel queues in parts of Lagos and the FCT, the executive vice president, Downstream, Mr. Dapo Segun, appealed for understanding from Nigerians, saying the company was working with relevant stakeholders to address the distribution, evacuation and logistics challenges.