The Nigerian National Petroleum Company Limited (NNPCL) has rejected reports suggesting it ended the Naira-for-Crude agreement with Dangote Refinery. The state-owned oil firm insists the contract is still in place, and discussions for renewal are ongoing.
Responding to viral claims, NNPCL clarified that it has supplied 84 million barrels of crude oil to the refinery since its operations began in 2023. According to the company’s Chief Corporate Communications Officer, Olufemi Soneye, negotiations for a fresh deal are in progress.
This contradicts speculations that NNPCL abruptly stopped crude oil supply to Dangote Refinery, a move that could have disrupted Nigeria’s refining sector.
Naira-for-Crude Deal Still Ongoing
NNPCL confirmed that the Naira-for-Crude agreement was structured as a six-month contract and is due to expire in March 2025. However, the company assured that talks are underway to finalize a renewed deal.
Soneye explained, “NNPC Limited has noted recent reports circulating on social media regarding the alleeged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery. To clarify, the contract 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.”
This statement reinforces NNPCL’s commitment to local crude supply, ensuring that Dangote Refinery continues its refining operations smoothly.
How Much Crude Has Dangote Refinery Received?
The Dangote Refinery, which has a refining capacity of 650,000 barrels per day, has received 48 million barrels of crude oil under the Naira-for-Crude arrangement. In total, NNPCL has supplied 84 million barrels since 2023, highlighting its dedication to boosting local refining.
Soneye reaffirmed, “Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.”
This debunks rumors that NNPCL is pulling back from its commitment to Dangote Refinery, which plays a crucial role in reducing Nigeria’s dependence on fuel imports.
What If the Agreement Ends?
Although NNPCL has denied ending the agreement, speculations alone have raised concerns about Nigeria’s refining sector. If the Naira-for-Crude deal is not renewed, it could lead to fuel shortages, increased dependence on imported petroleum products, and higher fuel prices.
We believe that Nigeria’s refining policies need more transparency to prevent misinformation that could disrupt the oil market. On the other hand, some believe that renegotiating the agreement could help improve its terms and create a more sustainable crude oil supply system.
For now, NNPCL’s firm denial of contract termination should calm public concerns, but uncertainty remains until a new deal is officially signed.
