Nigerian National Petroleum Company Limited has initiated fresh negotiations with the Dangote Petroleum Refinery over the renewal of the naira-for-crude agreement, as talks are underway in anticipation of the expiration of the initial deal, which ends on March 31, this year.
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NNPCL disclosed this in a statement, in response to claims that the government-owned oil company had suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.
NNPCL Chief Corporate Communications Officer, Olufemi Soneye, in the statement, explained that the initial deal was for six months, adding that discussions for the renewal of the agreement are currently ongoing, with the aim of establishing a new contract.
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He also stated that under the deal initiated in October 2024, the 650,000-capacity refinery has received 48 million barrels to refine for petroleum products, while a total of 84 million barrels has been supplied to the refinery since it commenced operations in 2023.
The spokesperson also clarified that the deal was subject to availability.
According to findings, crude oil worth about N486.31bn was received by the $20bn Lekki-based refinery under the deal between October and December 2024, as government commenced the sales of crude oil in naira to local refineries to improve supply on October 1, 2024.
The move was to save the country millions of dollars in petroleum product imports, and ultimately reduce the pump prices of refined products.
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NNPCL, DANGOTE BEGIN TALKS ON CRUDE-FOR NAIRA DEAL
