NNPCL Earns ₦336bn from Crude Sales to Dangote Refinery, Others in Q1 2025
The Nigerian National Petroleum Company Limited (NNPCL) recorded a revenue of ₦336.37 billion from crude oil sales in the first quarter of 2025. According to internal documents obtained by The PUNCH, the Dangote Petroleum Refinery alone accounted for over 32% of these transactions.
The crude oil, supplied between January and March 2025, was sold at unit prices ranging from $74.87 to $80.34 per barrel. These sales used exchange rates recommended by the African Export-Import Bank, varying between ₦1,501.22/$ and ₦1,562.91/$.
Documents submitted at the Federation Account Allocation Committee (FAAC) revealed that NNPCL supplied crude worth ₦107.44 billion to the Dangote Refinery during the quarter. This was part of the Federal Government’s naira-for-crude policy aimed at boosting local refining and preserving foreign exchange.
Introduced in October 2024, the naira-for-crude initiative allows domestic refineries to pay for crude in naira rather than dollars. The Federal Executive Council (FEC) had earlier approved the scheme for an initial six-month period to stabilise fuel prices and improve supply.
Despite a temporary suspension in March 2025, the government reaffirmed its commitment to the policy, describing it as a key strategy to promote sustainable local refining.
Following the policy’s reinstatement, the Dangote Refinery reduced the ex-depot price of Premium Motor Spirit (petrol) to ₦835 per litre—its third price cut in under six weeks. This 3.5% drop reflects the benefits of the naira-based crude supply arrangement.
During the quarter, seven cargoes totaling 915,821 barrels were delivered to Dangote. These shipments originated from the Okwuibome field operated by Sterling Oil Exploration & Energy Production Company (SEEPCO) under Production Sharing Contracts (PSCs).
SEEPCO’s operations, however, have faced scrutiny. The Nigerian Content Development and Monitoring Board (NCDMB) is currently investigating the company over alleged anti-labour practices and violations of expatriate quota rules. In March, members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) protested at SEEPCO’s Lagos office over these issues.
The NCDMB confirmed it had previously sanctioned SEEPCO and is actively engaging the company over repeated non-compliance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Despite these issues, SEEPCO’s crude remains a major contributor to domestic supply. The company delivered the following to Dangote Refinery:
- December 2, 2024 (Gulf Loyalty):
- 99,737 barrels at $74.8738, worth ₦11.67bn
- 50,000 barrels, worth ₦5.85bn
- January 3, 2025 (Almi Voyager):
- 216,584 barrels at $80.34, worth ₦26.82bn
- 49,500 barrels, worth ₦6.13bn
- February 15, 2025 (Sonangol Kalandula):
- 50,000 barrels at $75.895, worth ₦5.69bn
- 300,000 barrels, worth ₦34.18bn
- 150,000 barrels, worth ₦17.09bn
Altogether, the Dangote-related crude sales for Q1 2025 totalled $70.54 million, converted to ₦107.44 billion at varying Afreximbank-advised rates.
Beyond Dangote, NNPCL also sold crude from Egina, Erha, and Forcados Blend fields to international refiners, earning ₦228.94 billion. These foreign transactions covered 1.95 million barrels and were priced at lower exchange rates between ₦1,477.22 and ₦1,535.82 per dollar.
Details of the foreign sales include:
- Dec 24, 2024 (Baghdad – Egina): 400,000 barrels at $77.83, ₦45.99bn
- Jan 6, 2025 (Aquafreedom – Erha): 550,501 barrels at $74.90, ₦61.50bn
- Feb 4, 2025 (Almi Voyager – Forcados): 12,000 barrels at $76.40, ₦1.41bn
- Feb 20, 2025 (Apache – Egina): 990,158 barrels at $78.94, ₦120.04bn
These shipments were conducted under standard PSC terms, with operators including Total (TUPNI), ExxonMobil (ESSO), and Pan Ocean.
The revenue gap between domestic and international crude sales highlights the currency volatility and NNPCL’s effort to balance forex generation with local supply demands.
A technical subcommittee, comprising officials from the Ministry of Finance, NNPCL, and the Dangote Group, has been established to restructure the naira-for-crude policy. The goal is to ensure continuous delivery, address currency mismatches, and revise pricing frameworks for sustainable implementation.
References
NNPCL Earns ₦336bn from Crude Sales to Dangote Refinery, Others in Q1 2025