By Abiola Olawale
The Nigerian National Petroleum Company Limited (NNPCL) has debunked reports suggesting that it has ended the naira-for-crude oil swap arrangement with Dangote Refinery owned by Africa’s richest man and business magnate, Alhaji Aliko Dangote.
This is as the national oil company emphasized its commitment to supporting local refining capacity and reducing foreign exchange pressures.
In a statement released on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the company has not terminated the deal, which allows domestic refineries like Dangote Refinery to purchase crude oil in naira instead of dollars.
Soneye also stated that under the deal initiated in October 2024, the 650,000-capacity Dangote refinery has received 48 million barrels to refine petroleum products.
The statement reads in part: “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.”
