The Nigerian National Petroleum Company (NNPC) Limited has dismissed circulating reports suggesting a unilateral termination of its crude oil sales agreement in Naira with Dangote Refinery.
In an official press release issued on 10th March 2025, NNPC clarified that the existing contract was structured as a six-month agreement, subject to availability of crude oil, and is set to expire at the end of March 2025. The national oil company also confirmed that discussions are underway to establish a new contract for continued crude oil supply to the refinery.
NNPC’s Commitment to Domestic Crude Supply
Since the contract’s commencement in October 2024, NNPC has supplied over 48 million barrels of crude oil to Dangote Refinery under the Naira-denominated agreement. In total, the company has provided more than 84 million barrels to the refinery since it began operations in 2023.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” the statement, signed by Olufemi Soneye, Chief Corporate Communications Officer, NNPC Ltd, reaffirmed.
Implications for Nigeria’s Downstream Sector
The clarification comes amid concerns over fuel availability and pricing in Nigeria, especially as the Naira continues to depreciate against major foreign currencies. The NNPC-Dangote crude contract has been instrumental in reducing foreign exchange demand for crude imports, aligning with the Federal Government’s push for local refining under the ‘Decade of Gas’ initiative.
Market analysts believe that a newly negotiated contract between NNPC and Dangote Refinery could help stabilise petroleum product prices in the coming months, provided there are no disruptions in crude oil supply.
Future Outlook
As the current six-month agreement nears expiration, industry stakeholders will closely monitor developments between NNPC and Dangote Refinery. A successful contract renewal could enhance Nigeria’s energy security, reduce fuel import reliance, and strengthen the nation’s downstream petroleum sector.
For now, NNPC’s assurance of continued crude supply signals a commitment to ensuring stability in the local oil and gas market.