KEY POINTS
- NNPCL stopped its crude oil supply through the Naira for Crude program while upholding its support for homegrown refining activities.
- The original contract of March 2025 serves as the expiry term while new negotiations continue to secure another agreement.
- NPNN has been providing more than 84 million barrels of crude to Dangote Refinery since its 2023 start.
The Nigerian National Petroleum Company Limited (NNPCL) halted crude oil deliveries to Dangote refineries with others as a part of the government’s Naira for Crude program.
The company maintains its support for supplying oil to the operational 650,000 barrels-per-day (bpd) Dangote Refinery.
NNPCL announced through its Chief Corporate Communications Officer Olufemi Soneye that it will stop selling crude oil at Naira prices by March 2025, this means NNPCL ends naira for crude supply to Dangote, other refineries. The organization continued its work towards finalizing terms for a fresh crude supply contract.
Ongoing crude supply discussions
Soneye clarified that the Naira-based crude deal functioned as a framework which needed to be renewed upon completion of its scheduled six months so long as there remained available crude supplies, hence NNPCL ends naira for crude supply.
Soneye made a statement about “NNPC Limited having observed recent social media reports which suggest a single-party decision to break the Naira-based crude oil sales agreement between NNPC and Dangote Refinery.”
The six-month crude oil sale contract in Naira continues to expire at March 2025 due to availability requirements. The process of obtaining a new contract stands active at this moment.
The refinery has received over 48 million barrels of crude oil supply from NNPCL starting from October 2024. Since its commercial start in 2023 NNPCL supplied above 84 million barrels of crude to the facility through to present.
Commitment to domestic refining, even as NNPCL ends naira for crude supply
The Naira for Crude program has been completed but NNPCL maintained its support for domestic refining operations to all stakeholders. The company emphasizes its dedication to provide crude oil deliveries to local refineries subject to agreed terms of supply.
The initiative occurs during a period where Nigeria aims to strengthen its domestic refining facilities and minimize its petroleum product imports.
