The Nigerian National Petroleum Company (NNPC) Limited has confirmed ongoing discussions with Dangote Refinery regarding the renewal of their crude oil sales agreement, which is set to expire at the end of March 2025.
The oil company clarified that the current six-month contract for crude oil sales in Naira was never terminated unilaterally, contrary to reports circulating on social media.
“The agreement, which began in October 2024, has operated as planned and is now approaching its scheduled conclusion,” Olufemj Soneye, NNPC Chief Corporate Communications Officer, explained.
Soneye also explained, “Under the existing arrangement, NNPC has delivered over 48 million barrels of crude oil to Dangote Refinery since October 2024. This brings the total supply to more than 84 million barrels since the refinery began operations in 2023.”
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” the press release read in part.
The clarification comes amid speculation about the future of the naira-denominated oil supply arrangement, which has been viewed as strategic for Nigeria’s domestic refining capacity and currency stability.