Naira-for-crude was structured as a six-month agreement with private refineries, NNPCL clarifies
Nigerian National Petroleum Company Limited (NNPCL) on Monday disclosed that the Naira-for-crude deal with Dangote Refinery, among other private refineries was structured as a six-month agreement.
WESTERNPOST had reported of NNPCL suspending the naira-for-crude oil swap deal with domestic refiners, including Dangote Refinery and other private operators.
The decision, which took immediate effect, has sparked discussions about its implications for Nigeria’s energy sector and the broader economy.
The naira-for-crude arrangement, introduced on October 1, 2024, allowed local refiners to purchase crude oil in naira instead of dollars. The initiative was designed to support domestic refining capacity, reduce reliance on imported petroleum products, and stabilize the local currency by easing pressure on foreign exchange reserves.
Responding to report that it has suspended the naira-for-crude oil swap deal with domestic refiners, including Dangote Refinery and other private operators, the Chief Corporate Communications Officer, NNPCL, Olufemi Soneye in a statement stated the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025.
He noted that discussions are currently ongoing towards emplacing a new contract.
“Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.
“In aggregate, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023,” he disclosed.
He added that NNPCL remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.
