The Nigerian National Petroleum Company Limited (NNPCL) has initiated fresh negotiations with the Dangote Petroleum Refinery over renewing their naira-for-crude agreement, which is set to expire on March 31, 2025. In a statement issued on Monday, NNPCL clarified that the current six-month contract—subject to crude oil availability—remains active and that recent reports of its suspension until 2030 are unfounded.
Under the existing agreement, Dangote Refinery has received over 48 million barrels of crude oil since October 2024, and a total of 84 million barrels since the refinery began operations in 2023. Detailed records from October indicate that crude supplies were valued at approximately N486.31 billion.
The NNPCL spokesperson, Olufemi Soneye, confirmed that negotiations are underway to establish a new contract that will build on the framework of the current policy.
The government’s stance on the naira-for-crude policy remains unchanged, with officials affirming that the arrangement is designed to stabilize domestic supply, reduce foreign exchange exposure, and boost local refining capacity. Zacch Adedeji, Chairman of the Technical Sub-Committee on the deal, reiterated that the policy has been successful and will continue to benefit the nation’s economy.
He also emphasized that local refineries are not being excluded from domestic crude supply and that the Nigerian Upstream Petroleum Regulatory Commission is closely monitoring compliance with relevant provisions of the Petroleum Industry Act.
Industry stakeholders, including representatives from the Crude Oil Refinery-Owners Association of Nigeria, have welcomed the renewal process and urged the government to honor its commitment to meeting the 27,000 barrels per day demand from modular refineries in the second phase of the initiative. They noted that the initial phase has contributed to reduced fuel prices and a stronger naira against the dollar, highlighting the overall success of the policy.
