The Nigerian National Petroleum Company Limited sold N107.44 billion of crude oil under the Naira-crude oil swap agreement to Dangote Petroleum Refinery in the first quarter of 2025.
This represents 32 percent of the N336.7 billion worth of crude oil sold in the quarter, according to internal documents submitted at the Federation Account Allocation Committee meetings.
Seven crude cargoes totaling 915,821 barrels were supplied to the 650,000-barrel-per-day Dangote Refinery between January and March 2025.
The cargoes were lifted from the Okwuibome field operated by Sterling Oil Exploration and Energy Production Company under a Production Sharing Contract.
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 per dollar.
The NNPC stated that the agreement aligns with the government’s broader policy to stabilise the naira and reduce reliance on imported refined petroleum products.
The Dangote Refinery temporarily halted sales of petroleum products in naira in March citing a mismatch between naira-denominated sales and dollar-denominated purchase obligations.
However, following a new directive from the Federal Executive Council, the naira-for-crude policy was reinstated as a permanent framework to support local refining.
Shortly after the policy’s continuation, Dangote Refinery announced a reduction in its Premium Motor Spirit ex-depot price to N835 per litre.
This represents the third downward revision in under six weeks as the refinery adjusts its pricing structure in response to the lower cost of domestic crude supply under the naira settlement system.
The Naira-for-crude initiative began on October 1, 2024 with the goal of reducing pressure on the official foreign exchange market and improving energy security.
By sourcing crude locally and refining domestically, the government aims to cut fuel import bills, stabilise pump prices, and enhance the country’s refining capacity.
While the crude supply supports domestic refining, the operator of the Okwuibome field, SEEPCO, is currently under regulatory scrutiny for alleged labour and local content violations.
The Nigerian Content Development and Monitoring Board said SEEPCO has previously been sanctioned and is under review again following complaints by labour unions regarding expatriate quota abuse and failure to meet employment obligations.
Despite ongoing investigations, crude from the SEEPCO-operated field remains a critical feedstock for local refineries including Dangote.
The government has pledged to intensify monitoring while ensuring that critical energy infrastructure is not disrupted.
With rising demand for domestic refining and continued exchange rate volatility, analysts expect naira-based crude sales to expand in the coming quarters.
The policy’s success will depend on consistent supply, fair pricing, and strict enforcement of regulatory compliance across the oil and gas value chain.
