NNPC Ltd speaks on Naira crude contract with Dangote Refinery

Nigeria National Petroleum Company Limited (NNPC Ltd) says it has not terminated the naira to crude contract with Dangote Refinery. 

In a statement Monday in Abuja and signed by Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, the state owned oil firm stated that the initial contract with Dangote Refinery was for 6 months. 

Reports in media outlets over the weekend stated that NNPCL had canceled the Naira to crude deal between it and the 650,000 barrels per day Dangote Refinery. 

According to the reports, company’s action had started impacting the price of petrol.

“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,” Soneye said. 

NNPC Ltd assured that it remains “committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”