NNPC records N336.37bn in crude oil sales in Q1 2025 as Dangote Refinery takes lion’s share

NNPC earned N336.37bn from crude oil sales in Q1 2025, with Dangote Refinery accounting for over 32% under naira-for-crude policy

[dropcap]T[/dropcap]he Nigerian National Petroleum Company Limited (NNPCL) generated a total of N336.37 billion from crude oil sales in the first quarter of 2025.

Also read: Auditor-General receives documents to verify N2.7tn fuel subsidy claim by NNPCL

The Dangote Petroleum Refinery accounted for over 32% of the revenue, with transactions worth N107.44 billion, according to internal documents obtained by The PUNCH.

These transactions were executed under the naira-for-crude policy launched by the Federal Government in October 2024, aimed at reducing dollar demand, ensuring stable fuel prices, and guaranteeing domestic crude supply to local refineries. The policy mandates that NNPC sells crude oil to local refiners in naira, with exchange rates guided by the African Export-Import Bank (Afreximbank).

A document seen by The PUNCH confirmed, “The Dangote domestic lifting is payable in naira based on Afrexim Bank advised exchange rate.”

The Dangote refinery, Nigeria’s flagship 650,000 barrels-per-day plant, has been the biggest beneficiary of the deal. It received seven crude cargoes totalling 915,821 barrels from the Okwuibome field operated by Sterling Oil Exploration & Energy Production Company (SEEPCO) under a production-sharing contract.

This policy is not just a temporary fix—it is a sustainable strategy to boost local refining and protect our foreign exchange reserves.

The policy, briefly suspended in March 2025, has since been reinstated after Federal Executive Council intervention. In response, Dangote Refinery reduced its ex-depot petrol price to N835 per litre, marking a 3.5% cut in under six weeks.

While NNPC continues its local supply under this model, it also exported 1.95 million barrels to international buyers in Q1 2025, earning $151.44 million (N228.93bn) from sales of Egina, Erha, and Forcados Blend crude.

The documents further reveal significant price differences between domestic and export transactions. Exchange rates ranged from N1,501.22 to N1,562.91 for domestic deals, while foreign sales used lower rates between N1,477.22 and N1,535.82, reflecting Nigeria’s volatile currency environment.

Meanwhile, SEEPCO—the supplier of Dangote’s crude—faces scrutiny over alleged anti-labour practices and expatriate quota abuse. The Nigerian Content Development and Monitoring Board (NCDMB) and PENGASSAN are investigating. SEEPCO was previously sanctioned for breaching local content laws and had committed to reforms.

Despite the controversy, its crude remains vital to domestic refining. A technical subcommittee has now been formed to review pricing models, ensure smoother implementation of the naira-for-crude policy, and manage currency mismatches.

Also read: FG reaffirms naira-for-crude deal with Dangote refinery

“This policy is not just a temporary fix—it is a sustainable strategy to boost local refining and protect our foreign exchange reserves,” an NNPC official said.