The Nigerian National Petroleum Company Limited (NNPCL) reported earnings of N336.37 billion from crude oil sales in the first quarter of 2025. The Dangote Petroleum Refinery contributed over 32% of this figure, with crude supply transactions worth N107.44 billion.
Internal documents submitted at Federation Account Allocation Committee meetings revealed that the crude sold to Dangote was priced between $74.87 and $80.34 per barrel, using exchange rates from N1,501.22/$ to N1,562.91/$, based on African Export-Import Bank (Afreximbank) recommendations.
The naira-for-crude initiative—designed to reduce the demand for US dollars and stabilize fuel prices—was introduced by the Federal Government in July 2024. It mandated the sale of crude oil in naira to local refineries, including the Lagos-based 650,000 barrels-per-day Dangote facility, for six months starting October 1, 2024.
Although the Dangote refinery temporarily paused naira-based petroleum product sales in March 2025 due to currency mismatch issues, the Federal Executive Council reinstated the policy, declaring it a long-term solution to boost local refining.
Following this, the refinery reduced the ex-depot petrol price to N835/litre—its third cut in under six weeks—reflecting the benefits of naira-priced crude.
According to the documents, seven shipments totaling 915,821 barrels were delivered to Dangote from the Okwuibome field, operated by Sterling Oil Exploration & Energy Production Company (SEEPCO). The crude was supplied under Production Sharing Contracts.
Despite SEEPCO’s critical role, the Nigerian Content Development and Monitoring Board (NCDMB) continues to investigate the company for alleged anti-labour practices and expatriate quota abuses, with support from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN).
The NCDMB had previously sanctioned SEEPCO for violating the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and scheduled a performance review for March 2025 after incomplete commitments made in 2020 and 2022.
The invoices showed due dates between January 16 and March 22, 2025. One early shipment on December 2, 2024, aboard the Gulf Loyalty, included 149,737 barrels sold at $74.87 per barrel, bringing in N17.52bn. Other shipments followed aboard Almi Voyager and Sonangol Kalandula, with a combined total value of $70.54 million or N107.44 billion in naira.
In the same quarter, NNPCL earned N228.93 billion from the export of 1.95 million barrels to international buyers. These exports, involving Egina, Erha, and Forcados Blend crude, were sold under Production Sharing Contracts through NNPC Trading.
Key international transactions included a 990,158-barrel Egina cargo aboard the Apache in February 2025, which brought in N120.04 billion. Exchange rates provided by the Central Bank of Nigeria ranged from N1,477.22 to N1,535.82, lower than the rates used for domestic sales.
This exchange rate discrepancy underscores the challenges NNPCL faces balancing foreign exchange revenue with domestic fuel supply. A technical subcommittee has been set up to improve pricing, address currency mismatches, and ensure continued supply to local refineries under the revised naira-for-crude policy.
Credit: The Punch
