NNPCL confirms ongoing review of Naira-for-Crude contract with Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPC Ltd) has officially dismissed reports suggesting that the Naira-for-crude oil contract between the state oil company and Dangote Refinery has been unilaterally terminated.

Instead, the company clarified that the contract remains in effect, though its terms are currently under review.

In a statement issued on Monday, March 10, 2025, NNPC Ltd’s Chief Corporate Communications Officer, Olufemi Soneye, emphasized that the agreement was initially structured as a six-month contract, expiring at the end of March 2025.

He assured that discussions are ongoing to establish a new contract that will guide future transactions between both parties.

Soneye further disclosed that, under the existing arrangement, NNPC Ltd has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024.

Since the refinery began operations in 2023, it has received a cumulative total of 84 million barrels of crude oil.

This clarification comes in response to widespread reports circulating on social media, which alleged that the crude oil sales agreement in Naira had been abruptly halted.

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The rumors sparked concerns over the continuity of the deal, which was initially approved by the Federal Executive Council (FEC) in July 2024 as a strategic move to curb Nigeria’s foreign exchange expenditure and stabilize the pump prices of petroleum products.

“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,” the statement read.

NNPC Ltd reaffirmed its commitment to supplying crude oil to local refineries, including Dangote Refinery, under mutually agreed terms and conditions. The company assured stakeholders that any future agreements will align with the federal government’s broader economic objectives.

The Naira-for-crude policy was introduced to reduce pressure on the country’s forex reserves, ensuring that local refiners could access crude oil without the need for foreign currency transactions.

As discussions progress, industry observers will be keenly watching for the outcome of the revised contract and its potential impact on Nigeria’s downstream oil sector.