The Nigerian National Petroleum Company Limited (NNPCL) has dismissed reports suggesting it unilaterally terminated the naira-for-crude oil supply agreement with Dangote Refinery.
In a statement on Monday by its Chief Corporate Communications Officer, Olufemi Soneye, the company explained that the agreement was designed as a six-month contract, subject to availability, and is expected to expire at the end of March 2025.
The statement noted that discussions are currently ongoing to establish a new contract.
NNPC stated that more than 48 million barrels of crude oil had been supplied to Dangote Refinery under the current arrangement since October 2024. In total, it said over 84 million barrels have been made available to the refinery since it commenced operations in 2023.
The company reaffirmed its commitment to continue supplying crude oil for local refining, based on terms and conditions agreed upon by both parties.
The statement reads, “Re: Clarification on the Naira Crude Contract Between NNPC Limited and Dangote Refinery.
“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 Ltd. and Dangote Refinery.
“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 this arrangement, NNPC Ltd. has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC Ltd. has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”
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