The Federal Government has commenced the sale of crude oil and refined petroleum products in naira, effective October 1, 2024, the Ministry of Finance announced in a statement on X on Saturday.

The decision was made following a directive from the Federal Executive Council and a subsequent review by an implementation committee chaired by the Minister of Finance.

“The Minister of Finance and Coordinating Minister of the Economy announced that, in line with the Federal Executive Council directive, the sale of crude oil and refined petroleum products in naira has officially commenced as of October 1, 2024,” the ministry’s statement read.

It was further disclosed that a review meeting, chaired by the Minister of Finance, Wale Edun, on October 3, affirmed the commencement of this “Crude Oil and Refined Products Sales in Naira” initiative, with key stakeholders confirming its launch.

Last month, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency announced that the Federal Executive Council had approved the sale of crude to local refineries in naira and the corresponding purchase of petroleum products in naira. The plan includes the sale of 385,000 barrels per day (kbpd) of crude oil to the Dangote refinery, to be paid for in naira.

The government explained that the naira-for-crude initiative would help reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country.

The Special Adviser on Media to the Chairman of the Federal Inland Revenue Service (FIRS), Mr. Dare Adekanbi, confirmed last Sunday that the plan for the crude oil supply to the $20 billion Lekki-based Dangote refinery was still in place.

Despite this confirmation, some officials from the Dangote refinery and other refineries stated on Thursday that they were not aware if the naira-for-crude deal had been activated.

Officials from the Nigerian Upstream Petroleum Regulatory Commission, the Federal Ministry of Finance, and the Nigerian National Petroleum Company (NNPC) also declined to comment on the deal’s status.

In September, the government explained that the naira-for-crude initiative would help alleviate pressure on the naira, eliminate unnecessary transaction costs, and enhance the availability of petroleum products nationwide.

“Since then, the implementation committee chaired by the Minister of Finance and we, the technical committee, have worked intensely with NNPC and the Dangote refinery to finalise the modalities for the FEC approval,” stated Zaccheus Adedeji, the Special Adviser to the President on Revenue.

Adedeji further clarified that the Dangote refinery will supply petrol (PMS) and diesel to the domestic market in exchange for crude oil paid in naira. Diesel will be sold in naira to any interested buyers, while PMS will only be sold to NNPC, which will then distribute it to various marketers.

“All associated regulatory costs (NPA, NIMASA, etc.) will also be paid in naira,” Adedeji added. He also highlighted the creation of a one-stop shop to coordinate services from regulatory and security agencies for the smooth implementation of the initiative.

Key officials present at the October 3 meeting included Minister of State for Petroleum, Heineken Lokpobiri; Special Adviser to the President on Energy, Olu Verheijen; NNPC’s Group Chief Executive Officer, Mele Kyari; Dangote Group’s Vice President, and several other key figures in the petroleum and finance sectors.

The Federal Government has set up a committee to investigate the taxation and operational disputes between the Osun Government, and Segilola Resources Operating Limited(SROL), a subsidiary of Thor Explorations limited.

The Minister of Solid Minerals Development, Dr Dele Alake, made this known in a statement by his Special Assistant on Media, Segun Tomori, on Friday in Abuja.

Alake said that the committee was established to engage both parties with the aim of resolving the dispute and restoring industrial harmony.

The News Agency of Nigeria (NAN) reports that the Osun State Government, on Sept. 30, sealed the business premises of SROL, following a court order permitting it to confiscate the company for various flagrant tax violations and other operational matters.

The state government had charged the company with unethical business practices, and tax evasion amounting to approximately 1.9 million US dollars.

He said that the committee would be chaired by Dr Mary Ogbe, the Permanent Secretary of the ministry.

According to him, the committee will include representatives of the Federal Inland Revenue Service, Ministry of Labour and Employment, and the National Association of Chambers of Commerce, Industry, Mines and Agriculture.

He emphasised that the Federal Government has been showcasing investment opportunities in the solid minerals sector to the global audience.

He, however, cautioned that the closure of mining operations by sub-nationals could abort efforts to attract Foreign Direct Investment (FDI) and provoke divestment.

“ Indiscriminate closures of mining operations by sub-nationals raises the risk of discouraging foreign direct investments and even worse, possible divestment by existing companies.

“Mining is on the exclusive legislative list. The Ministry of Solid Minerals should be consulted before such disruptive actions are taken,” he said.

The minister restated the Federal Government’s determination to open up Nigeria’s landscape to boost economic growth, increase employment opportunities, and facilitate community development.

He maintained that any interruption in industrial production could undermine the goals of economic prosperity.

Alake urged both parties to cooperate with the committee in the discharge of their duties.

He added that, while the issues were being resolved, production should be allowed to continue at the company.

“ I hereby call on Gov Ademola Adeleke of Osun and the management of Thor Exploration Limited to sue for peace and industrial harmony in the interest of the workers.

“I want them to think of some many dependents, who may be adversely affected by closure of operations at the factory,” he said.

The Central Bank of Nigeria (CBN) says it sold 543.5 million dollars to authorised dealer banks between Sept. 6 and Sept. 30.

According to a statement issued by Omolara Duke, the Director, the Financial Markets Department of the CBN, the transaction was through a two-way quote at the Nigeria Foreign Exchange Market (NFEM) on 11 dealing days.

Duke said that the spot sales was to reduce observed market volatility driven by high demand for commodity imports and seasoned demand for fx.

She said that the value date for all the transactions was T+2.

The News Agency of Nigeria (NAN) reports that T+2 refers to the settlement dates of security transactions that occur on a transaction date plus two days.

“This statement is to educate and provide guidance on the general public the pricing of fx.

“This is by taking a clue from the range of rates at which gx was sold by the CBN to authorised Dealers.

“The CBN will continue to facilitate the supply of fx into the NFEM as part of its holistic fx management strategy,” she said.

NAN recalls that the CBN had earlier announced the introduction of an Electronic Foreign Exchange Matching System (EFEMS), for Foreign Exchange (FX) transactions in NFEM.

Duke said that the new system was expected to enhance governance, transparency, and facilitate a market driven exchange rate that would be accessible to the public.

“This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market.

“Authorised dealers will subsequently conduct all foreign exchange transactions in the interbank Fx market on the EFEMS approved by the CBN where transactions will be reflected immediately,” she said.

She said that there would be a two-week test run in November, adding that the apex bank would publish real time prices when the EFEMS becomes operational.

She said that the CBN would also buy and sell orders from the system and in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules for the EFEMS.

“The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants.

“Authorised dealers are, therefore, required to comply with extant guidelines and regulations governing the Nigeria foreign exchange market.

“They should ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go live date,” she said.

The Central Bank of Nigeria (CBN), has announced the introduction of an Electronic Foreign Exchange Matching System (EFEMS), for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM).

According to a statement issued by Omolara Duke, the Director of the Financial Markets Department, the EFEMS will be implemented by Dec. 1.

Duke said that the new system was expected to enhance governance, and transparency, and facilitate a market-driven exchange rate that would be accessible to the public.

“This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market.

“Authorised dealers will subsequently conduct all foreign exchange transactions in the interbank Fx market on the EFEMS approved by the CBN where transactions will be reflected immediately,” she said.

She said that there would be a two-week test run in November, adding that the apex bank would publish real-time prices when the EFEMS starts becomes operational.

She said that the CBN would also buy and sell orders from the system and in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules for the EFEMS.

“The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants.

“Authorised dealers are, therefore, required to comply with extant guidelines and regulations governing the Nigeria foreign exchange market.

“They should ensure that all necessary documentation, training, and systems integrations are concluded ahead of the go live date,” she said.

The Federal Government has introduced new fiscal incentives to boost foreign investments in Nigeria’s oil and gas sector.

The two incentives were unveiled by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun in a statement on Wednesday.

According to the statement by the Finance Ministry, and signed by the Director of Information and Public Relations, Mohammed Manga said the incentives are aimed at revitalising Nigeria’s oil and gas sector.

It also announced that the importation of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment would no longer require value-added tax payment.

Manga said the initiative would position Nigeria’s deep offshore basin as a premier destination for global oil and gas investments, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.

This policy directive arrives alongside new divestment plans from ExxonMobil and Seplat, which President Bola Tinubu said would receive ministerial approval in the coming days.

The statement read, “In its avowed determination towards ensuring a boost in the nation’s upstream and downstream sector, the Federal Government has introduced groundbreaking concessions aimed at revitalising the industry.

“This is just as the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today unveiled two major fiscal incentives aimed at revitalising Nigeria’s oil and gas sector: Value Added Tax Modification Order 2024 and Notice of Tax Incentives for Deep Offshore Oil & Gas Production, in accordance with the Oil & Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order 2024.”

Explaining further, Manga said, “The VAT Modification Order 2024 introduces exemptions on a range of key energy products and infrastructure, including diesel, feed gas, Liquefied Petroleum Gas, Compressed Natural Gas, electric vehicles, Liquefied Natural Gas infrastructure, and clean cooking equipment.

“These measures are designed to lower the cost of living, bolster energy security, and accelerate Nigeria’s transition to cleaner energy sources.”

It explained that the notice of tax incentives for deep offshore oil & gas production provides new tax reliefs for deep offshore projects, stressing that, “This initiative is aimed at positioning Nigeria’s deep offshore basin as a premier destination for global oil and gas investments.”

The ministry said these fiscal incentives reflect the administration’s steadfast commitment to promoting sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians.

The statement added, “These reforms are part of a broader series of investment-driven policy initiatives championed by President Bola Tinubu, in line with Policy Directives 40-42.

“They reflect the administration’s strong commitment to fostering sustainable growth in the energy sector and enhancing Nigeria’s global competitiveness in oil and gas production.

“With these bold initiatives, Nigeria is firmly on track to reclaim its position as a leader in the global oil and gas market.

“These fiscal incentives demonstrate the administration’s unwavering commitment to fostering sustainable growth, enhancing energy security, and driving economic prosperity for all Nigerians,” the statement concluded.

The Minister of Aviation and Aerospace Development, Festus Keyamo, on Wednesday said the return of Emirates Airlines to Nigeria after two years will lead to healthy competitive pricing for the good of Nigerians.

He stated this in Lagos upon arrival aboard an Emirates aircraft from the United Arab Emirates, saying the airline had returned to stay and that the Bilateral Air Service Agreement discussed was to secure the route for local operators.

“We signed a new BASA defining our relationship altogether, again making it healthier, more open, and for the benefit of the Nigerian people,” Keyamo said.

“With this, we have more competition on different international routes now. That is what it’s all about to ensure healthy competition. A healthy competition leads to competitive pricing for the benefit of the Nigerian people.”

The minister explained that local carriers now have the opportunity to fly to any destination in the UAE.

“It was especially damaging because we know that Nigerians have a lot of investments in the UAE. They have many interests and investments there, so eventually, it was not an adventure in self-glorification; it was a fight for the people of Nigeria, especially.

“But you also know that the reason we fought for this is that Dubai, in particular, is a major hub of the world; it links virtually every country,” he added.

Emirates Airlines suspended flight operations to Nigeria in November 2022 over its inability to repatriate its $85 million revenue trapped in the country.

Keyamo announced in April that he received a letter from the airline confirming that all the issues had been resolved and that he was prepared to resume flights.

To resolve the issue, both Nigeria and the UAE on September 27, agreed on reciprocal rights ahead of the resumption of Emirates Airlines’ flight operations to Nigeria.