NNPC May End Naira-For-Crude Deal with Dangote Refinery Over Delivery Disputes
Abuja, Nigeria – The Nigerian National Petroleum Company Limited (NNPCL) is reportedly considering terminating its naira-for-crude oil agreement with the Dangote Refinery by the end of March 2025 due to unresolved delivery issues.
The six-month-old deal saw NNPCL supplying up to 385,000 barrels of crude oil daily to the refinery in exchange for 25 million litres of petrol per day. However, sources indicate that Dangote Refinery has struggled to meet its obligations, allegedly owing the NNPCL over a billion litres of premium motor spirit (PMS). Reports suggest this shortfall has prompted the state oil company to reconsider renewing the arrangement.
Presidency sources claim the NNPCL has already made the decision not to extend the agreement, though no official statement has been released.
In response to these allegations, a Dangote Refinery official dismissed the claims as “total falsehood.” The official, speaking to Energy Times, cited recent remarks by Dangote Group President, Aliko Dangote, who affirmed that the refinery holds over half a billion litres of petroleum products, valued at more than N600 billion.
“The refinery is producing sufficient volumes of gasoline, diesel, and kerosene to meet Nigeria’s needs,” the official stated. “How can a company with this level of stock refuse to supply? The reports are completely untrue.”
As the dispute between both parties unfolds, industry stakeholders are awaiting an official position from the NNPCL regarding the future of the naira-for-crude deal.
