By Mike Abbah
The Nigerian National Petroleum Company (NNPC) Limited has addressed speculations about its crude oil sales agreement with the Dangote Refinery and other local refineries, clarifying the status of the naira-for-crude contract.
According to a press statement by Chief Corporate Communications Officer of NNPC Ltd, Olufemi Soneye, the existing six-month contract, which allows the sale of crude oil in Naira and is subject to availability, is set to expire at the end of March 2025.
The press statement disclosed that discussions are ongoing to establish a new contract, contrary to reports suggesting a unilateral termination.
Recent reports, it would be recalled, had indicated that the NNPC has suspended the naira-for-crude oil swap deal with domestic refiners, including the Dangote Refinery, a decision it claimed, took immediate effect.
This suspension has sparked discussions regarding its implications for Nigeria’s energy sector and the broader economy
Below, however, is full text of the NNPC clarification.
“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 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 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.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”
