KEY POINTS

• NNPC clarified that its six-month crude oil sales agreement with Dangote Refinery is set to expire in March 2025, with discussions ongoing for a new contract.
• Over 48 million barrels of crude oil have been supplied to Dangote Refinery since October 2024, with more than 84 million barrels provided since operations began in 2023.
• The NNPC reaffirmed its commitment to supporting local refining, emphasizing transparency and collaboration to enhance Nigeria’s energy security and economic growth.

The Nigerian National Petroleum Company (NNPC) Limited has refuted claims that it terminated its crude oil sales agreement with Dangote Refinery.

In a statement issued on Monday, March 10, 2025, the NNPC clarified that the contract was structured as a six-month agreement, subject to availability, and is set to expire at the end of March 2025.

The company emphasized that discussions are already underway to establish a new contract once the current one concludes.

“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 emplacing a new contract,” said Chief Corporate Communications Officer Olufemi Soneye.

AAN TV reports that the NNPC also revealed that over 48 million barrels of crude oil have been supplied to Dangote Refinery since October 2024, with more than 84 million barrels provided since the refinery began operations in 2023.

Commitment to local refining

The NNPC reaffirmed its commitment to supporting local refining and ensuring the continuous supply of crude oil under mutually agreed terms.

The clarification comes amid widespread misinformation on social media, which suggested that the NNPC had unilaterally terminated the deal. The company’s statement aims to reassure industry stakeholders and maintain transparency regarding its operations.

The Dangote Refinery, one of Africa’s largest refineries, plays a crucial role in Nigeria’s efforts to reduce its reliance on imported petroleum products.

The refinery’s operations have significantly boosted local refining capacity, creating jobs and contributing to the economy. The NNPC’s continued support for the refinery underscores its strategic focus on enhancing Nigeria’s energy security and self-sufficiency.

The NNPC’s clarification highlights the importance of clear communication in maintaining investor confidence and stabilizing the energy sector. As Nigeria seeks to attract more investments in its oil and gas industry, transparency and adherence to contractual agreements are critical. The ongoing discussions for a new contract between NNPC and Dangote Refinery reflect a collaborative approach to addressing the country’s energy challenges.

The NNPC’s commitment to local refining aligns with the federal government’s broader agenda to revitalize the oil and gas sector. By supporting domestic refineries, the NNPC aims to reduce the country’s dependence on imported fuel, create jobs, and stimulate economic growth. The successful implementation of the new contract will be a significant step toward achieving these objectives.