Business a.m.
The Nigerian National Petroleum Company Limited (NNPCL) has embarked on a fresh round of negotiations with the Dangote Petroleum Refinery, seeking to renew the naira-for-crude agreement that is set to expire on March 31, 2025.
Setting the record straight on the status of the naira-for-crude arrangement with local refineries, , the NNPCL confirmed that a total of 84 million barrels of crude oil had been supplied to the Dangote Refinery since it commenced operations.
This disclosure follows recent media reports about the expiration of the naira-for-crude agreement, and the Nigerian government’s continued efforts to support domestic refining capacity.
Olufemi Soneye, NNPCL’s chief corporate communications Officer, addressed media reports surrounding the naira-for-crude arrangement with the Dangote Refinery through an official statement released on Monday.
Soneye confirmed that the initial agreement was designed as a six-month pilot phase and refuted claims that the NNPCL had canceled the contract with the Dangote Refinery.
“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 expires at the end of March 2025. Discussions are currently ongoing towards emplacing a new contract.
“Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC has made over 84 million barrels of crude oil available to the refinery since its commencement of operations in 2023,” Soneye stated.
Similarly, Zacch Adedeji, the technical sub-committee chairman, reaffirmed the government’s commitment to the initiative, emphasising that the idea of canceling the contract was never on the table.
the Federal Inland Revenue Service (FIRS) chairman further stated that the policy has yielded positive results for the Nigerian economy, citing substantial evidence to support this assertion, and reiterated that the naira-for-crude deal will continue to serve as a vital tool for the country’s economic development.
As negotiations for the renewal of the naira-for-crude agreement are underway, Eche Idoko, the publicity secretary of the Crude Oil Refinery-Owners Association of Nigeria (CORON), confirmed that the renewal was always an integral part of the original plan.
Idoko noted that there have been no deviations from the initial discussions, stressing that the renewal process is being conducted in line with the original terms and conditions of the agreement.
