The Nigerian National Petroleum Company Limited (NNPCL) has confirmed the cessation of its crude oil supply to Dangote Refinery and other refineries involved in the federal government’s Naira for Crude initiative. Despite the end of this arrangement, the company remains dedicated to supplying crude to Dangote’s 650,000 barrels per day refinery.
NNPCL explained that the crude oil sales contract, which was established under the Naira for Crude program, was designed with an expiration date in March 2025. The company emphasized that discussions are ongoing to secure the continued provision of crude oil to refineries beyond the current agreement.
In a statement issued by the company’s Chief Corporate Communications Officer, Olufemi Soneye, NNPCL addressed circulating rumors about the alleged unilateral termination of the crude oil sales agreement between NNPC and Dangote Refinery.
Soneye clarified, “The contract for the sale of crude oil in Naira was structured as a six-month arrangement, subject to availability, and will conclude at the end of March 2025. Negotiations are currently in progress to finalize a new contract.”
Since the start of the agreement in October 2024, NNPC has supplied over 48 million barrels of crude oil to Dangote Refinery. In total, NNPC has delivered more than 84 million barrels of crude oil to the refinery since its operations began in 2023. The company reaffirmed its commitment to supporting local refining efforts based on mutually agreed terms and conditions.