The Nigerian National Petroleum Company (NNPC) Limited has clarified that it has not terminated its naira-for-crude agreement with Dangote Petroleum Refinery, stating that negotiations are underway for a new contract as the current arrangement expires this month.
In a statement released Monday, NNPC’s Chief Corporate Communications Officer Olufemi Soneye addressed reports circulating on social media that claimed the government-owned oil company had suspended the naira-for-crude deal until 2030 due to having forward-sold all its crude oil allocations.
“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,” Soneye explained.
The statement came after TheCable reported that NNPC had suspended the deal, which would have forced refiners to rely on international suppliers for crude oil, potentially leading to higher fuel prices due to increased dollar costs.
According to Soneye, NNPC has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024 under the current agreement. In total, the company has made more than 84 million barrels available to the refinery since it began operations in 2023.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” the statement added.
The naira-for-crude initiative, which began on October 1, 2024, was implemented to improve the domestic petroleum supply, reduce the country’s dependence on imported products, and ultimately lower fuel prices for Nigerian consumers.
Industry analysts consider the continuation of this arrangement crucial for stabilizing Nigeria’s fuel supply chain and supporting the local currency, which has faced significant pressures in recent months.
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