The Nigerian National Petroleum Company Limited (NNPCL) has issued a statement to clarify recent reports circulating on social media regarding the alleged termination of the crude oil sales agreement in Naira between NNPCL and Dangote Refinery.
According to Olufemi Soneye, Chief Corporate Communications Officer of NNPCL, 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 establishing a new contract.
NNPCL has made significant crude oil deliveries to Dangote Refinery since its commencement of operations in 2023. Specifically:
- Over 48 million barrels of crude oil have been made available to Dangote Refinery since October 2024 under this arrangement.
- In aggregate, NNPCL has made over 84 million barrels of crude oil available to the Refinery since 2023.
The Federal Executive Council (FEC) directed NNPCL to sell crude oil to Dangote Refinery and other local refineries in Naira, rather than in US dollars, in July 2024. This move aims to reduce the strain on Nigeria’s foreign exchange reserves and stabilize the pump price of petrol, diesel, and other products.
NNPCL remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions. The company is working towards establishing a new contract with Dangote Refinery, ensuring a continued partnership that supports Nigeria’s energy sector.