The Nigerian National Petroleum Company Limited (NNPCL) has responded to recent reports circulating on social media about the alleged unilateral termination of its crude oil sales agreement in Naira with Dangote Refinery.
In a statement issued on Monday, Olufemi Soneye, the NNPCL’s Chief Corporate Communications Officer, clarified that the crude oil sales agreement with Dangote Refinery was structured as a six-month contract, subject to availability, and is set to expire at the end of March 2025. He emphasized that discussions are currently underway to establish a new contract.
Soneye further explained that since October 2024, NNPCL has provided over 48 million barrels of crude oil to Dangote Refinery under this arrangement. In total, more than 84 million barrels of crude oil have been supplied to the refinery since it began operations in 2023.
He reaffirmed NNPCL’s commitment to supplying crude oil for local refining based on mutually agreed terms and conditions.
The Federal Executive Council (FEC) had, in July 2024, directed the NNPCL to sell crude oil to Dangote Refinery and other local refineries in Naira, rather than in U.S. dollars. This move aims to alleviate pressure on Nigeria’s foreign reserves and stabilize the prices of petrol, diesel, and other petroleum products in the country.
