Crude-for-naira sales was a 6-months agreement, NNPC clarifies

The Nigerian National Petroleum Company Limited (NNPCL) has clarified its stand about the crude for Naira sales arrangement, stating that the contract for the sale of crude oil in Naira was structured as a six-month agreement and subject to availability.

Olufemi Soneye, chief Corporate Communications Officer of NNPCL, responding to news reports on the termination of the contract with Dangote refinery on Monday, said the contract for the sale of crude oil in naira expires at the end of March 2025.

Read also: Nigerians to benefit from Dangote, NNPCL petrol price war — Rewane

He said, “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.”

He explained that discussions are currently ongoing towards emplacing a new contract, adding that under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.

According to him, in aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.

Read also: NNPC signs 80mmscf/d gas supply deal with Ssonic Petroleum for 20 years

“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” he said.

The Nigerian government had commenced the sale of crude oil to local refineries, invluding Dangote refinery in October 1, 2024.