The Nigerian National Petroleum Company Limited (NNPCL) has dismissed reports suggesting that it unilaterally terminated its crude oil sales agreement with Dangote Refinery, clarifying that the contract was a time-bound arrangement set to expire at the end of March 2025.

In a statement issued on Monday, NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, explained that the crude oil supply contract, structured as a six-month agreement, was subject to availability and had not been abruptly canceled. He further stated that negotiations for a new contract are already underway.

Soneye highlighted that NNPCL has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024 under the current arrangement. In total, more than 84 million barrels have been provided since the refinery began operations in 2023.

“NNPCL remains committed to supplying crude oil for local refining based on mutually agreed terms and conditions,” Soneye said, reaffirming the company’s dedication to supporting domestic refining capacity.

The crude oil sales agreement in Naira aligns with a directive issued by the Federal Executive Council (FEC) in July 2024, which mandated that NNPCL sell crude oil to Dangote Refinery and other local refineries in Naira instead of U.S. dollars. The decision aimed to reduce pressure on Nigeria’s foreign reserves and help stabilize fuel prices, including petrol and diesel.

While social media reports speculated that the NNPCL had scrapped the agreement, the state-owned oil company has assured that discussions are in progress to establish a new contract to continue crude oil supplies to Dangote Refinery beyond March 2025.