The Nigerian National Petroleum Company Limited (NNPCL) has addressed recent social media reports regarding the alleged unilateral termination of its crude oil sales agreement with Dangote Refinery in Naira.
In a statement issued on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the contract for selling crude oil in Naira was a six-month agreement, dependent on availability, and is set to expire at the end of March 2025. He further stated that discussions are ongoing to establish a new contract.
Since October 2024, NNPCL has provided Dangote Refinery with over 48 million barrels of crude oil under this arrangement. In total, NNPCL has supplied more than 84 million barrels of crude oil to the refinery since it began operations in 2023.
Soneye emphasized that NNPCL remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.
In July 2024, the Federal Executive Council (FEC) directed NNPCL to sell crude oil to Dangote Refinery and other local refineries in Naira, rather than in U.S. dollars. This decision was aimed at reducing pressure on the country’s foreign exchange reserves and stabilizing fuel prices in Nigeria.
