NNPC explains looming end to crude oil sale contract with Dangote Refinery

By Olaitan Ibrahim

The Nigerian National Petroleum Company Limited (NNPCL) has dismissed reports suggesting that it unilaterally terminated its crude oil sales agreement with Dangote Refinery.

In a statement issued on Monday, NNPCL clarified that the existing contract, which allowed crude oil sales in Naira, was structured as a six-month agreement, contingent on availability, and is set to expire at the end of March 2025.

It said discussions were already underway for a new contractual arrangement.

Since October 2024, NNPCL has supplied Dangote Refinery with over 48 million barrels of crude oil under the Naira contract. In total, the company has provided more than 84 million barrels to the refinery since it commenced operations in 2023.

NNPCL reaffirmed its commitment to supporting local refining, ensuring a steady crude oil supply based on mutually agreed terms.

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