NNPCL Addresses Concerns Over Naira Crude Contract with Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPCL) has clarified its naira crude oil contract with Dangote Refinery, dispelling speculations and reaffirming its commitment to transparency in the oil sector.

The Nigerian National Petroleum Company Limited (NNPCL) has responded to recent social media reports alleging that it unilaterally terminated the crude oil sales agreement in Naira with Dangote Refinery.

In a statement issued on Monday, Olufemi Soneye, the Chief Corporate Communications Officer of NNPCL, clarified that the contract for selling crude oil in Naira is designed as a six-month agreement. This arrangement depends on availability and will conclude at the end of March 2025.

He mentioned that talks are currently underway to establish a new contract.

As stated by Soneye, NNPCL has provided more than 48 million barrels of crude oil to Dangote Refinery since October 2024 as part of this arrangement.

He mentioned that, in total, the NNPCL has supplied more than 84 million barrels of crude oil to the refinery since it began operations in 2023.

He stated that NNPCL is still dedicated to providing crude oil for local refining under mutually agreed-upon terms and conditions.

In July 2024, the Federal Executive Council (FEC) instructed the NNPCL to sell crude oil to Dangote Refinery and other local refineries in naira instead of U.S. dollars.

The decision aimed to alleviate pressure on the country’s foreign expenditures and stabilize the prices of petrol, diesel, and other products at Nigerian pumps.