NNPC, Dangote Refinery In Talks Over New Naira-For-Crude Deal
The Nigerian National Petroleum Company (NNPC) Limited has confirmed that discussions are ongoing with Dangote Petroleum Refinery for a fresh naira-for-crude agreement, following reports that the current arrangement is set to expire at the end of March.
This comes after earlier reports suggested that the government-owned oil company had halted the naira-for-crude deal until 2030, forcing local refiners to seek crude oil from international markets at significantly higher costs.
However, in a statement released on Monday, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the initial agreement was structured as a six-month contract, dependent on crude availability, and will officially lapse by the end of March 2025.
“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 stated.
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He further revealed that since October 2024, NNPC has supplied Dangote Refinery with over 48 million barrels of crude oil. In total, 84 million barrels have been allocated to the refinery since its operational commencement in 2023.
The naira-for-crude arrangement was introduced on 1st October 2024 as part of efforts to strengthen domestic refining, reduce reliance on imported petroleum products, and mitigate foreign exchange pressures.
Sodiq Lawal is a passionate and dedicated journalist with a knack for uncovering captivating stories in the bustling metropolis of Osun State and Nigeria at large. He has a versatile reporting style, covering a wide range of topics, from politics , campus, and social issues to arts and culture, seeking impact in all facets of the society.
