NNPC speaks on Naira crude contract with Dangote Refinery

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The Nigerian National Petroleum Company Limited (NNPC Ltd) has addressed reports alleging unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery.

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The chief corporate communications officer of NNPC Ltd, Olufemi Soneye, in a statement on Monday, made this known in reaction to the reports.

In its statement Monday evening, the NNPC Ltd said 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.

Mr Soneye said discussions are currently ongoing towards emplacing a new contract.

Under this arrangement, he said NNPC Ltd has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.

In aggregate, he said NNPC Ltd has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.

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

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In July, the Federal Executive Council (FEC) directed NNPC Ltd to engage Dangote Refinery and other local refineries to resolve the dispute over the sale of crude oil to them.

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The FEC, presided over by President Tinubu, also directed that crude oil sales to the refineries be made in naira and that the refineries, located in Nigeria, sell their refined products to the Nigerian market in naira.

In October, the Nigerian government said it had officially commenced the sale of crude oil and refined petroleum products in Naira.