In a major boost to Nigeria’s oil earnings, the Nigerian National Petroleum Company Limited (NNPCL) has reported generating a massive N336.37 billion from crude oil sales in the first quarter of 2025.
Notably, the Dangote Petroleum Refinery emerged as a key player in this development, purchasing over 32 percent of the crude within the period.
According to internal documents submitted at the Federation Account Allocation Committee meetings and obtained by The NIGPOST, crude oil sales to the Dangote Refinery alone totaled N107.44 billion.
This was part of a strategic move by the Federal Government to prioritize local refining through a naira-for-crude policy aimed at conserving foreign exchange and stabilizing fuel prices.
The crude was sold at rates between $74.87 and $80.34 per barrel, with exchange rates ranging from N1,501.22 to N1,562.91 to the dollar—rates recommended by Afreximbank for naira-based transactions.
The naira-for-crude deal, launched in October 2024, was designed to ease pressure on the US dollar and reduce Nigeria’s reliance on imported fuel. Under this policy, local refineries like the Dangote Refinery were allowed to purchase crude in naira.
However, the deal temporarily halted in March 2025 when Dangote Refinery paused sales in naira due to dollar obligations on their crude purchases.
Despite the hiccup, the policy has since been reinstated, with the Federal Executive Council reaffirming its importance as a long-term strategy for refining sustainability. Following the policy’s reinstatement, the Dangote Refinery slashed its petrol ex-depot price to N835 per litre—the third cut in under six weeks.
Seven cargoes totaling 915,821 barrels were delivered to the refinery from the Okwuibome field, operated by SEEPCO under a Production Sharing Contract. Despite SEEPCO’s contribution to national production, the company is currently under scrutiny by the Nigerian Content Development and Monitoring Board (NCDMB) over alleged labor violations and abuse of expatriate quotas.
Meanwhile, NNPCL also earned an additional N228.94 billion from the export of 1.95 million barrels of crude oil to foreign refineries. These exports were from fields like Egina, Erha, and Forcados Blend, managed by oil giants including Total, ExxonMobil, and Pan Ocean under standard PSC agreements.
While foreign shipments used slightly lower exchange rates ranging from N1,477.22 to N1,535.82, domestic sales to the Dangote Refinery were priced higher due to Afreximbank recommendations. This highlights the ongoing exchange rate volatility and the challenges NNPCL faces in balancing domestic supply obligations with foreign exchange earnings.
To address the complexities of the naira-for-crude deal, a technical subcommittee has been formed involving representatives from the Finance Ministry, NNPC Ltd, and the Dangote Refinery. Their goal is to refine the pricing model and ensure smooth, sustainable local crude deliveries.
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