Sales of crude oil in naira was a 6-month agreement – NNPCL clarifies

The Nigerian National Petroleum Company Limited (NNPCL) has denied claims that it has terminated the crude-for-naira agreement it previously reached with the Dangote Refinery.

The denial follows media reports suggesting that NNPCL had ended the arrangement.

However, in a statement on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, dismissed these reports.

The statement, titled “Clarification on the Naira Crude Contract Between NNPC Limited and Dangote Refinery,” explained that the agreement for crude oil sales in naira was structured as a six-month contract set to expire at the end of March 2025.

The statement read that NNPC Limited had 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.

READ ALSO: Experts predict rise in petrol price as NNPC halts naira-for-crude deal for Dangote, others

It 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 Ltd. 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 expires at the end of March 2025. Discussions are currently ongoing towards placing a new contract.

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

“In aggregate, 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.”

It would be recalled that the sale of crude oil in naira was initially set to begin on October 1, 2024, though it faced uncertainties before its implementation.

Earlier in July 2024, President Tinubu approved the sale of crude oil in naira to refineries, using Dangote Refinery as a pilot programme.

The policy was expected to make petroleum products more affordable.

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