The Nigerian National Petroleum Company Limited (NNPCL) has addressed circulating reports regarding the alleged unilateral termination of its crude oil sales agreement with Dangote Refinery.
In a statement on Monday, Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, clarified that the contract was a six-month agreement based on availability and is set to expire at the end of March 2025. He also confirmed that discussions are ongoing to establish a new agreement.
Soneye revealed that NNPCL has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024 under the current contract. In total, 84 million barrels have been supplied since the refinery began operations in 2023.
“NNPCL remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” he stated.
In July 2024, the Federal Executive Council (FEC) directed NNPCL to sell crude oil to local refineries, including Dangote Refinery, in Naira instead of U.S. dollars. This move was aimed at reducing forex pressure and stabilizing fuel prices in Nigeria.
Despite speculations, NNPCL reassures stakeholders that crude oil supply to local refiners will continue, ensuring smoother fuel production and availability in the country.
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