Contrary to reports that the Nigerian National Petroleum Company (NNPC) Limited unilaterally terminated the naira-for-crude oil swap agreement with domestic refiners, including Dangote Refinery and other private operators, the company has, however clarified differently.
It said, 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.
Recall that 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.
While clarifying the allegations in a statement signed on Monday, the Chief Corporate Communications Officer of the national oil company, Mr. Olufemi Soneye, said discussions are currently ongoing towards emplacing a new contract.
He informed that under the arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.
In aggregate, he said, NNPC has made over 84 million barrels of crude oil available to the Refinery since its commencement of operations in 2023.
Mr. Soneye said, NNPC Limited remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions.
