NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.
The Nigerian National Petroleum Company Limited (NNPC) and the federal government announced yesterday that there are no intentions to cancel the Naira-for-crude contract with local oil refineries.
This includes the Dangote refinery in Lagos, which has a capacity of 650,000 barrels per day (bpd). Both the Nigerian National Petroleum Corporation (NNPC) and Zacch Adedeji, Chairman of the Technical Sub-Committee of the Naira-for-Crude contract, who also serves as the head of the Federal Inland Revenue Service (FIRS), were responding to claims that the oil exchange contract with domestic refiners had been terminated.
On October 1, 2024, the agreement was implemented, and it made it possible for local refiners to acquire crude oil in naira rather than dollars.
With the intention of bolstering domestic refining capacity, decreasing dependency on imported petroleum products, and stabilising the local currency by reducing the amount of pressure placed on foreign exchange reserves, the program was established.
In a statement released on Monday, Olufemi Soneye, the Chief Corporate Communications Officer of NNPC Ltd., stated that the contract was the subject of availability and that it would expire at the end of March 2025. He stated that further conversations were taking place in order to replace the existing contract.
NNPC and Dangote Refinery are believed to have unilaterally terminated their crude oil sales agreement in Naira, according to the spokesperson, who noted that the explanation was essential because of recent claims on social media surrounding the purported case of unilateral termination.
“Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.
“In aggregate, the NNPC 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.”