NNPC Sets The Record Straight ON Alleged Suspension OF Crude-For-Naira Initiative With Dangote

The Nigerian National Petroleum Company Limited (NNPCL) has clarified that it did not unilaterally terminate the crude-for-naira agreement with Dangote Refinery.....KINDLY READ THE FULL STORY HERE▶

The state-owned oil company reaffirmed its commitment to supplying crude oil to local refineries amid reports suggesting it had halted the naira-based crude supply arrangement, a move that could drive up petrol prices.

If the agreement were discontinued, local refineries, including Dangote Refinery, would be forced to source crude from international suppliers, significantly increasing costs due to dollar-denominated transactions.

Sources revealed that despite an increase in production, the NNPCL informed refiners that all its crude had already been forward-sold.

However, in response to the reports, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, issued a statement on Monday clarifying that the crude-for-naira contract was originally structured as a six-month agreement, subject to availability, and is set to expire at the end of March 2025. He further stated that discussions are ongoing to establish a new contract.

The statement, titled “Clarification on the Naira Crude Contract Between NNPC Limited and Dangote Refinery,” reads:

“NNPC Limited has observed recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC Ltd. and Dangote Refinery.

“To clarify, the contract was structured as a six-month agreement, subject to availability, and will expire at the end of March 2025. Discussions are currently underway to establish a new contract.

“Under this arrangement, NNPC Ltd. has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024. In total, the company has delivered more than 84 million barrels of crude to the refinery since its operations began in 2023.

“NNPC Limited remains fully committed to supplying crude oil for local refining under mutually agreed terms and conditions.”