The Nigerian National Petroleum Company Limited (NNPCL) has reacted to claims it terminated the crude-for-naira agreement it previously reached with the Dangote Refinery.
It was reported that the government-owned oil company had reportedly suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.
The discontinuation will force refiners to rely on international suppliers for crude oil, gulping huge costs in dollars and triggering an uptick in the pump price of petrol.
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Addressing the report in a statement on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, dismissed the news.
The chief corporate communications officer of NNPC, said the current deal will expire at the end of March.
“NNPC Limited has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC and Dangote Refinery,” Soneye said.
“To clarify, the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. Discussions are currently ongoing towards emplacing a new contract.”
Under the current arrangement, Soneye said NNPC has made over 48 million barrels of crude oil available to Dangote refinery since October 2024.
“In aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023,” he said.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”
It would be recalled that the sale of crude oil in naira was initially set to begin on October 1, 2024, though it faced uncertainties before its implementation.
Earlier in July 2024, President Tinubu approved the sale of crude oil in naira to refineries, using Dangote Refinery as a pilot program.
The policy was expected to make petroleum products more affordable.
