The Nigerian National Petroleum Company Limited (NNPC) has dismissed reports suggesting that it has unilaterally canceled the ongoing Naira-for-Crude agreement with Dangote Refinery. The company clarified that the contract was initially structured as a six-month supply agreement and remains valid until the end of March 2025.
In a statement released by NNPC’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, the company reaffirmed its commitment to supplying crude oil to Dangote Refinery and other local refineries under mutually agreed terms. He explained that while the current contract is set to expire soon, discussions are already underway for a new agreement.
“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 implementing a new contract,” Soneye said.
He further disclosed that under the existing deal, which commenced in October 2024, NNPC has supplied over 48 million barrels of crude oil to Dangote Refinery. In total, since the refinery began operations in 2023, NNPC has made over 84 million barrels of crude available for refining.
The Naira-for-Crude deal, which was introduced by the Federal Government last year, was designed to ensure a steady supply of crude oil to domestic refiners, reduce reliance on foreign exchange for transactions, and support local refining capacity. The initiative was seen as a strategic move to curb the impact of volatile exchange rates on fuel pricing and strengthen the nation’s energy security.
However, in recent weeks, there have been speculations that NNPC had abruptly terminated the deal, sparking concerns about potential disruptions in fuel supply and pricing.
