NNPCL sells N336bn crude to Dangote, foreign refiners
The Nigerian National Petroleum Company Limited generated N336.37bn from crude oil sales in the first quarter of 2025, with Dangote Petroleum Refinery accounting for over 32 per cent of the transactions, according to findings by The PUNCH.
The details were contained in internal documents from the NNPCL, submitted at the Federation Account Allocation Committee meetings, and obtained by The PUNCH on Monday.
The documents showed that crude supplies to Dangote refinery amounted to N107.44bn within the three-month period.
The crude was sold at unit prices ranging from $74.87 to $80.34 per barrel, using exchange rates between N1,501.22/$ and N1,562.91/$.
The PUNCH further learnt that the transactions were executed using exchange rates recommended by the African Export-Import Bank.
One of the documents seen by The PUNCH read, “The Dangote domestic lifting is payable in naira based on Afrexim Bank advised exchange rate.”
The sales formed part of the naira-for-crude deal introduced by the Federal Government to ensure domestic crude supply to the 650,000-barrel-per-day Lagos-based refinery.
As part of moves to reduce the strain on the US dollar and guarantee the price stability of petroleum products, the FEC in July 2024 directed the national oil company to sell crude oil to Dangote refinery in naira, rather than in the US dollar, for an initial phase of six months.
The sale of crude oil and refined petroleum products in naira to local refineries commenced on October 1, 2024, to improve supply, save the country millions of dollars in petroleum products imports, and ultimately reduce pump prices.
However, in March, Dangote refinery said it had temporarily halted the sale of petroleum products in naira.
The refinery said the decision to halt sales in naira was “necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars”.
After an initial delay, the Federal Executive Council eventually directed the full implementation of the suspended naira-for-crude agreement with local refiners.
It stated that the initiative with local refineries is not a temporary measure, but a “key policy directive designed to support sustainable local refining.”
Following the continuation of the naira-for-crude deal, the Dangote refinery announced a further reduction in the price of Premium Motor Spirit, popularly known as petrol.
The refinery slashed its ex-depot price to N835 per litre, marking its third price cut in less than six weeks.
The latest adjustment reflects a 3.5 per cent decline in the ex-depot rate, as the refinery continues to lower costs to reflect the naira-denominated crude supply framework agreed under the renewed naira-for-crude arrangement.
Findings by The PUNCH showed that seven cargoes were delivered to Dangote refinery, totalling 915,821 barrels sourced from the Okwuibome field operated by Sterling Oil Exploration & Energy Production Company under Production Sharing Contracts.
The Okwuibome oil field, operated by SEEPCO, is a significant onshore asset located in Nigeria’s Niger Delta region. SEEPCO, a subsidiary of the Sandesara Group, has been instrumental in developing the field, contributing to Nigeria’s crude oil production through its operations.
The PUNCH earlier reported that the Federal Government, through the Nigerian Content Development and Monitoring Board, said it would take action to address SEEPCO’s alleged anti-labour practices.
The board also recalled how Sterling Oil had repeatedly violated its local content directives, stating that it would not fail to sanction firms that flagrantly flout the provisions of its laws.
The members of the Petroleum and Natural Gas Senior Staff Association of Nigeria, led by their President, Mr. Festus Osifo, staged a protest at SEEPCO’s headquarters on Victoria Island, Lagos, over the company’s alleged anti-labour practices and expatriate abuses.
Osifo criticised the management of Sterling Oil for abusing the expatriate quota system, which he said led to discrimination against skilled Nigerian workers in the oil and gas sector.
He accused the company of discriminatory practices, monopolising jobs that Nigerians are qualified to perform with the Indian nationals.
The NCDMB expressed delight that PENGASSAN served as a whistleblower over the alleged expatriate quota abuse by the management of Sterling Oil, assuring the union and the general public that it would investigate the matter exhaustively and take necessary actions.
The board confirmed that it had “sanctioned SEEPCO a few years ago for gross violations of the NOGICD Act.” It added that it had recently started engaging with the company for the same reasons.
Sterling Oil was reported to have sought an out-of-court settlement and committed to addressing compliance issues and undertaking remediation in 2020.
It reportedly completed the training of 40 Nigerians in 2022; however, the employment commitment was not fulfilled. The NCDMB said it has requested statutory submissions from SEEPCO and scheduled a performance review session for March 2025.
Amid the scandal, the company’s field’s output plays a crucial role in the country’s oil sector, with its crude being supplied to refineries, including the Dangote Petroleum Refinery.
The documents obtained by The PUNCH showed that the due dates attached to the transaction invoices ranged from 16 January to 22 March 2025.
The earliest due date in the record was 16 January 2025, tied to two liftings made aboard Gulf Loyalty on 2 December 2024. The first of the two cargoes carried 99,737 barrels at a unit price of $74.8738 per barrel, yielding $7.47m, which was converted to N11.67bn at an exchange rate of N1,562.91.
The second cargo moved 50,000 barrels at the same unit price, with a dollar value of $3.74m and a naira equivalent of N5.85bn. Two further shipments were due on 7 February 2025. These were lifted on 3 January 2025 aboard the vessel Almi Voyager.
The first involved 216,584 barrels priced at $80.34 per barrel, generating $17.40m and converted to N26.82bn at an exchange rate of N1,541.36. The second shipment moved 49,500 barrels at the same unit price, generating $3.97m and converted to N6.13bn.
The remaining three transactions had due dates set for March 2025. Two of them, lifted on 15 February 2025 aboard Sonangol Kalandula, had a due date of 22 March 2025.
The first carried 50,000 barrels at $75.895 per barrel, with a value of $3.79m, which translated to N5.69bn at an exchange rate of N1,501.22.
The second, the largest single shipment in the period, involved 300,000 barrels at the same price, amounting to $22.77m and generating N34.18bn.
The final entry, also lifted aboard Sonangol Kalandula, was recorded with a Bill of Lading dated 15 February 2024 but had a due date of 21 March 2024. The 150,000-barrel cargo generated $11.38m and was converted to N17.09bn at the same exchange rate.
In total, the 915,821 barrels sold within the due date window of 16 January to 22 March 2025 were worth $70.54m in foreign-currency value and N107.44bn in naira. The exchange rates used ranged between N1,501.22 and N1,562.91 to the dollar, based on recommendations by Afreximbank for naira-based trade settlements.
The naira-for-crude policy was designed to conserve foreign exchange, support the naira, and prioritise crude supply to domestic refineries. The Dangote Refinery is the biggest beneficiary of the initiative so far, having received multiple cargoes under the scheme.
Although the policy experienced a temporary suspension in March 2025 following the expiration of the initial agreement, government officials have confirmed ongoing efforts to renew and restructure the deal.
A technical subcommittee comprising representatives from the Ministry of Finance, NNPC Ltd, and the Dangote Refinery has been established to refine pricing models, address currency flow imbalances, and ensure continuous delivery under revised terms.
The PUNCH further learnt that the NNPCL realised over N228bn from the sale of crude oil sourced from Egina, Erha, and Forcados Blend fields within Q1 2025 from other PSC transactions not linked to Dangote Refinery.
NNPCL exported 1.95 million barrels of crude to foreign refiners, earning $151.44m or N228.93bn at the recommended exchange rates.
According to documents seen by The PUNCH, four separate transactions were executed through NNPC Trading under standard PSC terms, involving crude liftings between December 2024 and February 2025.
The first of the four transactions occurred on 24 December 2024, with a cargo of 400,000 barrels of Egina crude lifted aboard Baghdad under Invoice PSC.12.24.010.
The shipment, with a due date of 28 January 2025, was priced at $77.8338 per barrel, generating a sales value of $31.13m. Using the provided exchange rate of N1,477.22 to the dollar, the naira-equivalent amounted to N45.99bn.
Another significant sale involved 550,501 barrels of Erha crude lifted on 6 January 2025 aboard Aquafreedom, under Invoice PSC.01.25.007, and due for settlement by 10 February 2025.
The cargo was priced at $74.9038 per barrel and valued at $41.23m. At an exchange rate of N1,491.49, the transaction yielded a naira equivalent of N61.50bn.
On February 4, 2025, NNPC Trading lifted 12,000 barrels of Forcados Blend crude aboard Almi Voyager, under Invoice PSC.02.25.011.
The crude was sold at $76.405 per barrel, generating a total value of $916,860. The exchange rate used for this conversion was N1,535.82, resulting in N1.41bn in naira revenue. The due date for this shipment was set for 11 March 2025.
The highest volume transaction in the period was the lifting of 990,158 barrels of Egina crude aboard Apache on 20 February 2025, with a due date of 27 March 2025.
This cargo, priced at $78.935 per barrel and valued at $78.15m, was converted at an exchange rate of N1,535.82, bringing in a total of approximately N120.04bn.
The cumulative revenue from these four shipments totalled approximately $151.43m, yielding over N228.94bn in naira.
All crude grades sold—Egina, Erha, and Forcados Blend—were lifted under the PSC regime from fields operated by TUPNI (Total), ESSO (ExxonMobil), and Pan Ocean.
The PUNCH learnt that for these four transactions, the exchange rate was provided by the Central Bank of Nigeria.
The documents further showed that foreign export sales were presented at lower exchange rates, ranging between N1,477.22 and N1,535.82, compared to the higher rates used for domestic supplies to Dangote Refinery, which peaked at N1,562.91/$.
The disparity reflects ongoing volatility in the official exchange rate and highlights the pressure on NNPCL to balance foreign exchange earnings with domestic energy supply obligations.
