There are strong indications that the Nigerian National Petroleum Company (NNPC) Limited may opt out of a naira-for-crude oil deal with the Dangote Refinery and Petrochemical at the end of this month, March 2025, due to irreconcilable differences on product delivery and other issues.
It was learnt that the refinery was unable to fulfill its side of the obligations in the six months oil deal.
The supply of crude oil in naira to the Dangote Petroleum Refinery by the NNPC Limited is to last for six months in the first instance, pending a further review by the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency.
The deal was signed in October 2024 and is expected lapses at the end of March 2024
Multiple sources from the committee and the Dangote Refinery confirmed to ENERGY TIMES that the naira-for-crude deal would last six months in the first phase because crude oil, being an international product, is priced in dollars.
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Under the deal, the Federal Government through the NNPCL delivered up to 385,000 barrels of Nigerian crude oil daily to the Dangote Refinery.
Also, under the deal, NNPCL is to off-take 25 million litres of petrol from the refinery daily.
Unfortunately, multiple sources alleged that the refinery had failed to meet its obligations to the NNPCL, to the extent that it now owes the company over a billion litres of premium motor spirit (PMS) known as petrol.
“NNPC will not renew the Naira-for-crude oil deal”, Presidency sources alleged.
This is total falsehood- Dangote Refinery official
Dangote Refinery’s official who spoke to ENERGY TIMES described the statement as total falsehood
“This is total falsehood. Just some days ago, the President of Dangote Group, Aliko Dangote said, we have “more than half a billion litres of petroleum and over N600 billion worth of products in our tanks. He said and I quote: “…as we speak right now we have more than half a billion litres. The Refinery is producing enough refined products, like gasoline, diesel, and kerosene, to meet 100 per cent of Nigeria’s requirements. So, how can a company that has this volume in stock refuse to supply? The story is total falsehood”, the official stated
.More details in ENERGY TIMES newspaper
