The Nigerian National Petroleum Company Limited (NNPCL) earned N336.37 billion from crude oil sales in the first quarter of 2025, with over 32% of this amount—N107.44 billion—attributed to supplies to the Dangote Petroleum Refinery, The DIP CONNECTS reports.
This was revealed in internal documents submitted at the Federation Account Allocation Committee (FAAC) meetings and obtained.
Crude sold to Dangote during this period was priced between $74.87 and $80.34 per barrel, based on exchange rates ranging from N1,501.22/$ to N1,562.91/$, recommended by the African Export-Import Bank (Afreximbank). Payments were made in naira under a naira-for-crude deal introduced by the Federal Government in July 2024 to support domestic supply, ease forex pressure, and stabilize fuel prices.
The agreement, initially valid for six months, began implementation on October 1, 2024. Although Dangote halted naira-denominated product sales in March 2025 due to a mismatch with dollar-based crude purchases, the Federal Executive Council insisted the policy must continue, calling it a “key policy directive” for sustainable refining.
Following its reinstatement, the refinery slashed petrol’s ex-depot price to N835 per litre—its third cut in six weeks—reflecting the impact of the renewed policy.
Seven crude cargoes totaling 915,821 barrels were delivered to Dangote Refinery from the Okwuibome field operated by Sterling Oil Exploration & Energy Production Company (SEEPCO) under Production Sharing Contracts (PSCs).
Despite its operational importance, SEEPCO has faced scrutiny for alleged labour violations and abuse of expatriate quotas. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) protested at its Lagos office, accusing the company of sidelining skilled Nigerian workers. The Nigerian Content Development and Monitoring Board (NCDMB) confirmed past sanctions and ongoing investigations into the company's compliance with local content laws.
According to DIP CONNECTS ONLINE NEWS, invoices for Dangote’s deliveries showed due dates from January 16 to March 22, 2025. For instance:
-
On December 2, 2024, two cargoes were lifted aboard Gulf Loyalty:
-
99,737 barrels at $74.8738/barrel generated $7.47m (N11.67bn).
-
50,000 barrels yielded $3.74m (N5.85bn).
-
-
On January 3, 2025, Almi Voyager carried:
-
216,584 barrels at $80.34/barrel for $17.4m (N26.82bn).
-
49,500 barrels for $3.97m (N6.13bn).
-
-
On February 15, 2025, Sonangol Kalandula lifted:
-
50,000 barrels at $75.895/barrel worth $3.79m (N5.69bn).
-
300,000 barrels generating $22.77m (N34.18bn).
-
The final 150,000-barrel cargo, also aboard Sonangol Kalandula, was valued at $11.38m (N17.09bn).
The cumulative value of these cargoes was $70.54 million (N107.44 billion), using Afreximbank-advised rates.
To maintain the deal, a technical committee including officials from the Ministry of Finance, NNPC Ltd, and Dangote Refinery is refining pricing models and addressing naira-dollar imbalances.
Meanwhile, NNPCL earned N228.93 billion from foreign crude sales unrelated to Dangote, exporting 1.95 million barrels from the Egina, Erha, and Forcados Blend fields. The exports, carried out via four PSC transactions between December 2024 and February 2025, yielded $151.44 million:
-
400,000 barrels of Egina crude lifted on December 24 aboard Baghdad earned $31.13m (N45.99bn).
-
550,501 barrels of Erha crude aboard Aquafreedom on January 6 brought in $41.23m (N61.5bn).
-
12,000 barrels of Forcados Blend aboard Almi Voyager on February 4 generated $916,860 (N1.41bn).
-
990,158 barrels of Egina aboard Apache on February 20 were sold for $78.15m (N120.04bn).
Exchange rates provided by the Central Bank of Nigeria ranged from N1,477.22 to N1,535.82/$—lower than the rates used for domestic sales to Dangote. This discrepancy underscores the ongoing volatility in forex markets and NNPCL’s challenge of balancing foreign earnings with local supply demands.
.jpg)
