NNPCL Sells Crude Worth N336bn to Dangote, Foreign Refineries in Q1 2025
The Nigerian National Petroleum Company Limited (NNPCL) has earned N336.37 billion from crude oil sales in the first quarter of 2025, with a significant portion—N107.44 billion—coming from crude sold to the Dangote Petroleum Refinery. This figure represents over 32% of the total revenue for the quarter.
According to internal NNPCL documents presented at the Federation Account Allocation Committee (FAAC) meetings and seen by The PUNCH, the crude supplied to Dangote was sold at unit prices ranging from $74.87 to $80.34 per barrel. The transactions were settled using naira, based on exchange rates between N1,501.22/$ and N1,562.91/$, as advised by the African Export-Import Bank (Afreximbank).
This arrangement falls under the Federal Government’s naira-for-crude policy introduced to ensure local refineries like Dangote’s get a steady supply of crude while reducing pressure on the U.S. dollar. This six-month policy began in October 2024 and aimed to stabilize fuel prices, reduce import bills, and strengthen the naira. However, Dangote refinery briefly suspended its sales in naira in March 2025 due to currency mismatches but resumed under a renewed agreement.
In line with the policy, the refinery cut the ex-depot price of petrol to N835 per litre in its third reduction within six weeks, reflecting the benefits of the naira-denominated crude supply model.
Seven crude shipments, totaling 915,821 barrels, were delivered to the Dangote Refinery from the Okwuibome field, operated by Sterling Oil Exploration & Energy Production Company (SEEPCO), under a production sharing contract. The crude sales earned NNPCL $70.54 million, converted to N107.44 billion.
SEEPCO, however, has come under fire from the Nigerian Content Development and Monitoring Board (NCDMB) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) over alleged anti-labour practices and abuse of the expatriate quota system. NCDMB is investigating the matter and has previously sanctioned SEEPCO for similar violations.
Despite these controversies, SEEPCO’s output remains crucial to Nigeria’s oil sector. The NNPCL also made over N228.93 billion from additional crude exports to foreign refineries during the same period.
NNPC Trading exported 1.95 million barrels from other fields—Egina, Erha, and Forcados Blend—operated under Production Sharing Contracts (PSC) with companies like Total (TUPNI), ExxonMobil (ESSO), and Pan Ocean. These shipments, converted using Central Bank of Nigeria exchange rates, brought in $151.44 million or N228.93 billion.
The largest single foreign shipment during the period was 990,158 barrels of Egina crude, generating about N120.04 billion. These export deals were carried out between December 2024 and February 2025, with due dates stretching into March 2025.
While the naira-for-crude policy experienced a short pause in March 2025, the government has since renewed its commitment to the program, calling it a key long-term policy for supporting local refining. A technical subcommittee involving the Ministry of Finance, NNPCL, and Dangote Refinery is working on refining the pricing models and ensuring steady implementation of the scheme.