The Nigerian National Petroleum Company (NNPC) Limited has clarified reports on the alleged halting of its naira-for-crude deal with the Dangote Refinery and other local refineries.
In a statement on Monday, the spokesperson of the national oil company, Olufemi Soneye, explained that NNPC Limited did not terminate the deal. Instead, the contract, which was initially set for six months, naturally concluded in March 2025.
Earlier reports had suggested that NNPC abruptly ended the deal with Dangote and other local refineries, a deal authorized by the federal executive council (FEC).
The reports claimed that sources familiar with the matter confirmed NNPC could no longer supply crude to the refineries because it had sold its products in forward sales to other oil traders.
However, NNPC denied this claim, stating that it supplied 48 million barrels of crude oil to the Dangote Refinery during the contract period.
“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 Ltd. and Dangote Refinery.
“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.
“Under this arrangement, NNPC Ltd. has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.
“In aggregate, NNPC Ltd. has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023,” Soneye said.
The Federal Executive Council (FEC) authorized in October 2024 the distribution of 450,000 barrels of domestically consumed crude to Nigerian refineries for sale in naira, with the Dangote plant acting as a test project.
The Lekki-based refinery was expected to receive 385,000 barrels of crude oil per day from the NNPC as part of the plan.
However, the national oil firm has been accused of consistently failing to meet this allocation.
In November 2024, the refinery reported that the crude-for-naira initiative was faltering, as it was still unable to secure adequate supplies.
Edwin Devakumar, the vice president of Dangote Industries Limited (DIL), described the supply from the oil company at one point as “peanuts.”
