In a significant development for Nigeria’s oil and gas sector, the Nigerian National Petroleum Company Limited (NNPCL) raked in N336.37 billion from crude oil sales in the first quarter of 2025, with the Dangote Petroleum Refinery alone accounting for more than 32% of the total, amounting to N107.44 billion.
This disclosure comes from internal NNPCL documents presented at recent Federation Account Allocation Committee (FAAC) meetings and obtained by ireport247new.com. The sales were carried out under the Federal Government’s naira-for-crude policy, a strategic initiative introduced to curb pressure on Nigeria’s foreign exchange reserves and stabilize the domestic fuel market.
The crude sold to the Dangote Refinery was sourced from the Okwuibome oil field, operated by Sterling Oil Exploration & Energy Production Company (SEEPCO), under a Production Sharing Contract (PSC). A total of seven cargoes, comprising 915,821 barrels, were delivered to the refinery. Unit prices ranged between $74.87 and $80.34 per barrel, with exchange rates spanning from N1,501.22 to N1,562.91 per dollar, as recommended by the African Export-Import Bank (Afreximbank).
The domestic transaction was structured in naira to support the government’s policy direction, which began in October 2024 following a Federal Executive Council (FEC) directive that mandated crude supplies to local refineries in the local currency. This move was aimed at reducing fuel importation costs, saving foreign exchange, and improving fuel availability within the country.
Initially launched as a six-month initiative, the naira-for-crude exchange had a brief suspension in March 2025 after Dangote Refinery halted local currency transactions due to currency mismatches between revenue and crude purchase obligations, which were still denominated in dollars. The Federal Government has since reinstated the policy, reaffirming its long-term commitment to supporting local refining and energy self-sufficiency.
In response to the policy’s reinstatement, Dangote Refinery slashed its ex-depot price of petrol to N835 per litre—its third price cut in under two months—demonstrating the positive impact of naira-denominated crude supply on fuel pricing.
However, SEEPCO, the operator of the Okwuibome field, has faced scrutiny for alleged anti-labour practices and non-compliance with local content regulations. The Nigerian Content Development and Monitoring Board (NCDMB), alongside the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has called out the company for expatriate quota abuses and marginalization of qualified Nigerian workers.
PENGASSAN recently staged protests against the company, prompting NCDMB to initiate a performance review and demand statutory compliance submissions. SEEPCO had previously committed to out-of-court settlements and partial remediation, including training programs for Nigerian workers, but has yet to fully meet its employment obligations.
Aside from Dangote, NNPCL generated over N228.93 billion from crude exports to foreign refiners in Q1 2025, covering 1.95 million barrels. These transactions involved crude from Egina, Erha, and Forcados Blend fields, managed by global oil giants like Total (TUPNI), ExxonMobil (ESSO), and Pan Ocean.
These exports were priced in dollars, using exchange rates provided by the Central Bank of Nigeria (CBN), which ranged from N1,477.22 to N1,535.82—slightly lower than the domestic rates applied to Dangote Refinery transactions.
The government has set up a technical subcommittee involving NNPCL, the Ministry of Finance, and Dangote Refinery to fine-tune pricing models and resolve foreign exchange-related imbalances in crude oil sales. The committee’s work is expected to stabilize supply, optimize earnings, and ensure policy consistency moving forward.
The naira-for-crude initiative, though initially experimental, now forms a critical pillar in Nigeria’s energy reform strategy. With Nigeria’s refining capacity being reshaped by the emergence of the Dangote Refinery and ongoing policy shifts, NNPCL’s earnings and local supply mechanisms could signal a transformative era for the oil-dependent economy.
NNPCL generated N336bn from crude oil sales in Q1 2025, with Dangote Refinery accounting for over N107bn under Nigeria’s naira-for-crude policy, amid regulatory scrutiny and shifting fuel pricing trends.