Market News

Contrary to reports that the Nigerian National Petroleum Company (NNPC) Limited has unilaterally suspended the naira-for-crude oil swap deal with domestic refiners, including Dangote Refinery and other private operators, NNPC has clarified that the contract for the sale of crude oil in Naira was structured as a six-month agreement. It also said the agreement was subject to availability, and expires at the end of March 2025.

Media reports on Monday had said that the naira-for-crude arrangement, introduced on October 1, 2024, to allow local refiners to purchase crude oil in naira instead of dollars, had been terminated by the NNPC. The reports, quoting sources, had claimed that NNPC had informed local refiners that it had already committed its crude oil production to forward contracts, leaving no supply available for domestic refineries.

A statement by the Chief Corporate Communications Officer NNPC Ltd, Mr Olufemi Soneye, said the contract for the sale of crude oil in naira expires at the end of March 2025 and was structured as a six-month agreement, subject to availability.

The statement added that discussions were currently ongoing towards emplacing a new contract.

The statement read: “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.

“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 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.

“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”