Victor EzejaThe Nigerian National Petroleum Company Limited (NNPCL) has stated that Dangote Refinery, got supply of over 48 million barrels of crude oil under the Naira-for-crude deal since October when the scheme began.
The national oil company added that it has supplied an aggregate of over 84 million barrels of crude oil to the Dangote Refinery since the $20 billion facility commenced operations in 2023.
Join our WhatsApp ChannelNNPCL made this known while clarifying reports that it has suspended the Naira-for-crude deal with Dangote Refinery and other domestic refineries.
Earlier, reports emerged that NNPCL discontinued the deal immediately, raising concerns about the implications for fuel costs.
However, in a statement signed by its Chief Corporate Communications Officer, Olufemi Soneye, NNPCL clarified that the agreement for the sale of crude oil in naira to local refiners, was structured to last for six months.
Soneye said since the implementation of the policy began in October 2024, it would terminate by end of March 2025 (end of this month).
READ ALSO: NNPC Refutes Viral Claims That Its Fuel Does Not Last
Part of the statement titled: “Re: Clarification on the Naira Crude Contract Between NNPC Limited and Dangote Refinery” reads: “To clarify, 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.
“Discussions are currently ongoing towards emplacing a new contract. Under this arrangement, NNPC Ltd. has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.
“In aggregate, NNPC Ltd. has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.
“NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.”
READ ALSO: Naira-for-Crude Deal Faces Challenges As Dangote Refinery Criticises NNPCL Supply Shortfall
The naira-for crude deal was initiated by President Bola Tinubu and approved by the Federal Executive Council and the National Assembly. The initiative was to enable local refiners access crude oil in naira and reduce the pressure on foreign exchange with the attendant impact on the cost of fuel as crude oil is traded in dollars at the international market.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
