The Nigerian National Petroleum Company (NNPC) Limited has announced ongoing negotiations for a new naira-for-crude agreement with Dangote Petroleum Refinery, clarifying recent reports regarding the discontinuation of the existing deal.
Earlier reports had indicated that NNPC had suspended the crude-for-naira agreement until 2030, citing that the government-owned oil giant had forward-sold all its crude oil volumes. Such a suspension would have compelled domestic refiners to seek international suppliers, significantly increasing their dollar expenditures and potentially driving up fuel pump prices across the country.
However, in a swift reaction on Monday, Olufemi Soneye, Chief Corporate Communications Officer of NNPC Limited, refuted the termination claims, explaining that the existing naira-for-crude arrangement was structured as a six-month agreement ending this March.
“NNPC Limited has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery,” Soneye said.
“To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. Discussions are currently ongoing towards emplacing a new contract.”
Soneye added that under the current arrangement, the NNPC has provided Dangote Refinery with substantial crude supplies since October 2024, amounting to over 48 million barrels of crude oil in that period alone.
“In aggregate, NNPC has made over 84 million barrels of crude oil available to the refinery since its commencement of operations in 2023,” he further noted.
Soneye reiterated NNPC’s dedication to fostering robust collaborations with local refiners, stating clearly:
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”
