The Nigerian National Petroleum Company Limited (NNPCL) has announced the termination of its oil supply to Dangote and other refineries involved in the federal government’s Naira-for-Crude program.
However, the company remains committed to delivering crude oil to the 650,000 barrels per day refinery.
NNPCL explained that the Naira-for-Crude contract was set to expire in March 2025. The company confirmed that discussions are ongoing to ensure a continuous supply of crude oil to refiners.
Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, clarified the situation in a statement titled Clarification on the Naira Crude Contract Between NNPC Limited and Dangote Refinery.
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 is set to expire at the end of March 2025. Discussions are currently ongoing toward establishing a new contract.”
Since October 2024, NNPC has supplied Dangote Refinery with over 48 million barrels of crude oil. In total, the company has provided more than 84 million barrels since the refinery began operations in 2023.
NNPCL reaffirmed its commitment to supplying crude oil for local refining under mutually agreed terms and conditions.
