The Nigerian National Petroleum Company Limited (NNPCL) generated ₦336.37 billion from crude oil sales in the first quarter of 2025, with Dangote Petroleum Refinery accounting for over 32 percent of the transactions. Internal documents submitted at the Federation Account Allocation Committee (FAAC) meetings and obtained by The PUNCH revealed that crude supplies to the refinery totaled ₦107.44 billion, with unit prices ranging from $74.87 to $80.34 per barrel. These transactions were settled in naira using exchange rates recommended by the African Export-Import Bank (Afreximbank), between ₦1,501.22/$ and ₦1,562.91/$.
This naira-based crude supply arrangement is part of the Federal Government’s initiative to support local refining, conserve foreign exchange, and reduce fuel import dependency. Initially introduced in July 2024, the naira-for-crude policy directed NNPCL to sell crude oil to Dangote Refinery in naira for an initial six-month phase. While the refinery briefly suspended sales in naira in March 2025 due to currency mismatch concerns, the Federal Executive Council reaffirmed the agreement, emphasizing its importance as a sustainable long-term policy.
Following the policy’s reinstatement, Dangote Refinery slashed its ex-depot petrol price to ₦835 per litre—its third reduction in six weeks—underscoring the benefits of local crude supply. During Q1 2025, the refinery received seven cargoes totaling 915,821 barrels from the Okwuibome field operated by Sterling Oil (SEEPCO), under a Production Sharing Contract. However, SEEPCO has faced scrutiny over alleged expatriate quota abuse and anti-labour practices, prompting investigations and sanctions from the Nigerian Content Development and Monitoring Board (NCDMB).
Despite these controversies, SEEPCO’s operations continue to play a vital role in Nigeria’s oil sector. The NNPCL’s sales documents listed crude shipments to Dangote Refinery with transaction values ranging from ₦5.69 billion to ₦34.18 billion. These shipments contributed significantly to local supply while leveraging domestic exchange rates. The total value of the crude lifted by Dangote Refinery was $70.54 million, equivalent to ₦107.44 billion, all settled in naira.
In addition to domestic sales, NNPCL also realized ₦228.94 billion from exporting 1.95 million barrels of crude oil to international refiners, sourced from Egina, Erha, and Forcados Blend fields. These export transactions, executed under Production Sharing Contracts with companies like Total, ExxonMobil, and Pan Ocean, were priced between $74.90 and $78.94 per barrel. The export exchange rates provided by the Central Bank of Nigeria were slightly lower than those used for Dangote’s domestic purchases, reflecting the volatility in the foreign exchange market and the challenge of balancing forex earnings with domestic energy priorities.
