NNPCL and Dangote Refinery have commenced negotiations to renew their naira-for-crude oil agreement, which is scheduled to expire on March 31, 2025.
This move follows the refutation by NNPCL of reports alleging the deal’s suspension until 2030. NNPCL clarified that the initial agreement, a six-month pilot program initiated in October 2024, saw Dangote Refinery receiving 48 million barrels of crude oil, valued at approximately N486.31 billion between October and December 2024, with a total of 84 million barrels supplied since the refinery’s 2023 launch.
Olufemi Soneye, NNPCL’s Chief Corporate Communications Officer, emphasized that the agreement, aimed at bolstering domestic refining and reducing foreign exchange reliance, was contingent on crude oil availability and that renewal discussions are currently underway.
Data released retroactively, with December figures disclosed in February 2025, revealed fluctuations in daily crude oil allocations to the Dangote refinery. The highest single-day allocation was 598,125 barrels on October 14, 2024, while the lowest was 5,000 barrels on October 30, 2024.
The government met its daily oil requirement only four times during this period. The first shipment of 100,000 barrels on October 14 was sold at $78.56 per barrel, totaling $7,856,870. Subsequent shipments on the same day and later in October involved varying quantities and prices, resulting in transactions valued in tens of billions of naira.
