Quote from Ndubuisi Ekekwe on March 10, 2025, 1:06 PM

A very big one there: "The Nigerian National Petroleum Company (NNPC) Limited has suspended its naira-for-crude arrangement with Dangote Petroleum Refinery and other local refineries, raising concerns over a potential hike in petrol prices...The naira-for-crude initiative was launched on October 1, 2024, to reduce Nigeria’s dependence on costly petroleum product imports, conserve foreign exchange (FX), and bring down petrol prices. The initiative allowed local refineries to buy crude oil in naira instead of dollars, a measure aimed at stabilizing the local currency and ensuring consistent supply to domestic refiners."

Poor Naira, it needs to develop fins to swim now, because a real float will be reloaded as these local refineries begin to look for US dollars to buy crude oil. Yet, this is expected as the bond payment on the domestic FGN USD bond now overdue by a week, and I think the government is looking for USD to pay fast.

-- Updated

PRESS RELEASE

Re: Clarification on the Naira Crude Contract Between NNPC Limited and Dangote Refinery

NNPC Limited has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in Naira between NNPC Ltd. and Dangote Refinery.

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.

Olufemi Soneye
Chief Corporate Communications Officer
NNPC Ltd.
Abuja

10th March, 2025