The Nigerian National Petroleum Company Limited (NNPC) has clarified recent reports circulating on social media about the alleged unilateral termination of its crude oil sales agreement with Dangote Refinery. The company confirmed that the contract, structured as a six-month agreement subject to availability, will expire at the end of March 2025, with discussions already underway to establish a new contract.
In a statement released by NNPC, the company emphasized that the Naira-denominated crude oil sales arrangement with Dangote Refinery was designed to run for six months. Since October 2024, NNPC has supplied over 48 million barrels of crude oil to the refinery under this arrangement, while a total of over 84 million barrels have been supplied since Dangote Refinery commenced operations in 2023.
NNPC reiterated its commitment to supplying crude oil for local refining based on mutually agreed terms and conditions, dismissing speculations of contract termination. The company noted that the ongoing negotiations aim to ensure the continuation of crude oil supplies to Dangote Refinery, which plays a significant role in Nigeria’s domestic refining capacity.
Industry stakeholders will be watching closely as NNPC and Dangote Refinery work towards finalizing the new agreement, a development critical to Nigeria’s energy security and efforts to reduce dependency on imported refined petroleum products.
