NNPCL Begins Talks With Dangote Refinery To Renew Naira-For-Crude Agreement

The Nigerian National Petroleum Company Limited (NNPCL) has started new negotiations with Dangote Petroleum Refinery to extend the naira-for-crude agreement.

The current deal, set to expire on March 31, 2025, is now being reviewed for renewal.

In a statement on Monday, NNPCL addressed reports claiming it had suspended the agreement until 2030 due to forward-selling all its crude oil.

The company dismissed these claims, confirming that talks for a new deal are already in progress.

According to Punch, Dangote Refinery received crude oil worth approximately ₦486.31 billion under the naira-for-crude arrangement between October and December 2024.

The initiative, introduced on October 1, 2024, allows local refineries to purchase crude in naira.

This move aims to enhance domestic supply, cut down on costly fuel imports, and help lower pump prices.

NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, explained that the initial agreement was a six-month contract.

Soneye confirmed that negotiations are underway to establish a renewed deal.

He stressed that since the arrangement began, the 650,000-barrel-per-day refinery has received 48 million barrels of crude for refining.

According to him, since operations started in 2023, the refinery has received 84 million barrels in total.

NNPCL spokesperson also clarified that crude supply under this agreement is subject to availability.

The company reaffirmed its commitment to supplying crude for local refining under mutually agreed terms.

The statement read, “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.”

“The national oil firm further reaffirmed its commitment to supplying crude oil for local refining based on mutually agreed terms and conditions.“

KanyiDaily recalls that Aliko Dangote recently called his $23 billion Dangote Refinery project the biggest risk he has ever taken, admitting that failure was not an option.