The Nigerian National Petroleum Company Limited (NNPCL) has refuted claims that it terminated its naira-for-crude oil sales agreement with Dangote Refinery. The clarification was made by NNPCL’s spokesperson, Olufemi Soneye, in a statement on Monday, following reports circulating on social media about the alleged cancellation of the deal.
Soneye explained that the agreement, which began in October 2024, was structured as a six-month contract, subject to crude oil availability, and is set to expire at the end of March 2025. He emphasized that discussions are currently underway to establish a new contract, ensuring the continuation of the partnership.
“NNPC Ltd. has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024. In total, NNPC Ltd. has provided over 84 million barrels of crude oil to the refinery since it commenced operations in 2023,” Soneye stated.
The naira-for-crude sales agreement was initiated following an announcement by President Bola Ahmed Tinubu, aimed at supporting local refining capacity and reducing Nigeria’s reliance on imported petroleum products. The deal has been a cornerstone of the partnership between NNPCL and Dangote Refinery, Africa’s largest refinery, located in Lagos.
The clarification comes amid growing concerns about the stability of Nigeria’s domestic crude supply chain and the refinery’s operational capacity. Soneye reassured stakeholders that the collaboration between NNPCL and Dangote Refinery remains strong, with both parties committed to ensuring the success of the initiative.
As discussions for a new contract progress, industry analysts have highlighted the importance of the partnership in boosting Nigeria’s refining capacity, creating jobs, and reducing the country’s dependence on fuel imports. The development underscores NNPCL’s role in supporting local industries and driving economic growth through strategic collaborations.