NNPCL Earns N336bn, Dangote Gets 32% Crude Share

The Nigerian National Petroleum Company Limited (NNPCL) recorded N336.37 billion in revenue from crude oil sales in the first quarter of 2025, with over 32% of the crude supply allocated to the Dangote Petroleum Refinery, according to internal company records submitted to the Federation Account Allocation Committee (FAAC).

Documents reviewed from the FAAC sessions show that crude deliveries to the Lagos-based 650,000-barrel-per-day Dangote refinery amounted to N107.44 billion within the period. The sale prices ranged between $74.87 and $80.34 per barrel, based on exchange rates between N1,501.22/$ and N1,562.91/$, following guidance from the African Export-Import Bank.

One of the memos highlighted that payments for these transactions were made in naira, in line with a federal policy launched to stabilize the naira and ensure steady crude supply to local refineries. This naira-for-crude initiative, initially approved for six months starting October 1, 2024, allowed domestic refineries to purchase crude in local currency instead of the U.S. dollar, easing foreign exchange pressures and aiming to reduce fuel importation costs.

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Despite a temporary halt in naira-denominated sales by the Dangote refinery in March—citing currency mismatch challenges—the government reaffirmed the continuation of the policy, describing it as a long-term strategy for boosting domestic refining capacity.

Following the reinstatement of the agreement, the refinery reduced the price of Premium Motor Spirit (PMS) to N835 per litre, its third price drop in less than two months. The price cut reflects adjustments made under the renewed crude-for-naira framework.

Data also revealed that seven crude cargoes, totaling 915,821 barrels, were supplied to the Dangote facility. The crude was sourced from the Okwuibome field, operated by Sterling Oil Exploration & Energy Production Company (SEEPCO), a subsidiary of the Sandesara Group. The onshore field remains a key contributor to Nigeria’s oil output.

However, SEEPCO has come under regulatory scrutiny for alleged labour rights violations and abuse of expatriate quotas. Members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) protested at the company’s Lagos headquarters, accusing the firm of marginalizing qualified Nigerian professionals in favour of foreign workers.

The Nigerian Content Development and Monitoring Board (NCDMB) has committed to investigating the complaints, noting that SEEPCO had previously faced sanctions over similar breaches and was in talks to resolve the issues. Despite this, the company’s crude remains central to Nigeria’s refinery feedstock.

In terms of revenue breakdown, the first two shipments to Dangote, lifted in December 2024 aboard the Gulf Loyalty, had due dates of 16 January 2025 and brought in a combined N17.52 billion. Two more shipments were lifted on January 3, 2025, aboard Almi Voyager, delivering 266,084 barrels and generating N32.95 billion.

Another two deliveries occurred on February 15 via Sonangol Kalandula, worth a total of N39.87 billion. The final transaction, also aboard Sonangol Kalandula, involved 150,000 barrels worth N17.09 billion.

In total, crude oil sold to the Dangote refinery during Q1 2025 amounted to $70.54 million, or N107.44 billion in naira, using exchange rates set by Afreximbank. The policy remains under review, with a government subcommittee established to fine-tune the pricing models and ensure continuous crude delivery.

Beyond domestic supplies, NNPCL also exported 1.95 million barrels of crude oil to international buyers during the same period, generating N228.93 billion. These shipments, from fields like Egina, Erha, and Forcados Blend operated by Total, ExxonMobil, and Pan Ocean, were executed under Production Sharing Contracts and sold through NNPC Trading.

Export earnings were calculated at slightly lower exchange rates—ranging between N1,477.22 and N1,535.82/$—as provided by the Central Bank. The gap in rates between domestic and foreign sales underscores the challenge of balancing foreign exchange inflow with local energy needs.