On Sunday, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency, confirmed that the supply of crude in naira by the Nigerian National Petroleum Company Limited, NNPCL, to the Dangote Petroleum Refinery is to begin on Tuesday, October 1, 2024.
Meanwhile, On September 13, 2024, the committee revealed that the Federal Executive Council under the leadership of H.E President Bola Tinubu approved the sale of crude to local refineries in naira, as well as the corresponding purchase of petroleum products in naira.
“From October 1, NNPC will commence the supply of about 385kbpd (385,000 barrels per day) of crude oil to the Dangote refinery to be paid for in naira,” the committee had declared.”
The Chairman of the Technical Sub-Committee is Zacch Adedeji, who is also the Chairman of the Federal Inland Revenue Service.
The Special Adviser on Media to the FIRS Chairman, Mr Dare Adekanmbi, when contacted on Sunday and asked if the plan for the crude oil supply to the $20bn Lekki-based plant is still intact, he responded positively.
Mr. Adekanmbi speaking on Adedeji’s behalf said: “I can confirm to you that the Chairman, Sub-Technical Committee, Zacch Adedeji, is working day and night to ensure that things go according to plans. He knows how important it is to have the agreement implemented as has been planned for the benefit of Nigerians.”
Adedeji also stated: “Since then, the implementation committee chaired by the Minister of Finance and we, the technical committee, have worked intensely with NNPC and Dangote refinery to fashion out the details of the modalities for the implementation of the FEC approval.”
While stating that crude would be sold to Dangote in naira from October 1, the committee chairman and FIRS boss further explained that: “In return, the Dangote refinery will supply PMS (petrol) and diesel of equivalent value to the domestic market to be paid in naira.
“Diesel will be sold in naira by the Dangote refinery to any interested off-taker. 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 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.”
Mr. Adedeji further explained that the technical committee that worked to bring the initiative to life would eventually transition to implementation execution and monitoring committee that would be working out of Lagos for the next three to six months.
The Permanent Secretary of the Federal Ministry of Finance, Mrs Lydia Jafiya; the FIRS boss, as well as representatives from NNPC, Central Bank of Nigeria, AfreximBank, and the Nigerian Upstream Petroleum Regulatory Commission make up the committee which was set up to craft a robust template that will ensure the successful implementation of the initiative.
