BREAKING: NNPC, Dangote Refinery in talks for new Naira-for-crude deal

The Nigerian National Petroleum Company (NNPC) Limited has confirmed that negotiations are underway for a new naira-for-crude oil agreement with Dangote Petroleum Refinery.

This follows reports that NNPC had suspended the existing deal until 2030 due to forward sales of its crude oil. The suspension would mean that refiners would have to source crude from international suppliers at higher costs, potentially leading to an increase in petrol prices.

However, in a statement on Monday, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the current agreement was designed as a six-month contract, set to expire at the end of March 2025.

“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,” Soneye stated.

“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 revealed that since October 2024, NNPC has supplied over 48 million barrels of crude oil to Dangote Refinery. In total, the refinery has received over 84 million barrels since it began operations in 2023.

He assured that NNPC remains committed to supplying crude oil to local refineries under mutually agreed terms.

The naira-for-crude arrangement, introduced on October 1, 2024, aimed to enhance local supply, reduce reliance on dollar-based petroleum imports, and stabilize pump prices.