The Nigerian National Petroleum Company Limited has addressed recent reports about the alleged termination of its crude oil sales agreement in Naira with Dangote Refinery.
In a statement on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the contract was structured as a six-month agreement, subject to availability, and will expire at the end of March 2025.
“The contract for the sale of crude oil in Naira was designed as a six-month arrangement, subject to the availability of crude, and it is set to end in March 2025,” Soneye said.
He further explained that talks are ongoing to establish a new contract.
According to Soneye, NNPCL has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024 under this agreement. In total, more than 84 million barrels have been provided to the refinery since it began operations in 2023.
“Discussions are already in progress to set up a new contract,” he added.
Soneye emphasized that NNPCL remains committed to supplying crude oil to local refineries based on mutually agreed terms and conditions.
The Federal Executive Council had, in July 2024, instructed NNPCL to sell crude oil to Dangote Refinery and other local refineries in Naira rather than in US dollars.
This decision aimed to ease the pressure on Nigeria’s foreign reserves and help stabilize the prices of petrol, diesel, and other refined products.
NNPCL’s clarification comes amid growing public interest in the partnership between the company and Dangote Refinery, as Nigerians closely monitor efforts to strengthen the country’s energy sector.
