The Nigerian National Petroleum Company Limited (NNPCL) generated N336.37 billion from crude oil sales in the first quarter of 2025, with the Dangote Petroleum Refinery accounting for over 32 per cent of the total, according to documents obtained by The PUNCH.
The earnings, derived from domestic and international transactions, were disclosed in internal documents submitted by NNPCL at Federation Account Allocation Committee (FAAC) meetings. A significant portion of the revenue—N107.44 billion—came from crude oil supplied to the 650,000-barrel-per-day Dangote Refinery.
The crude was sold at prices ranging between $74.87 and $80.34 per barrel, using exchange rates provided by the African Export-Import Bank (Afreximbank), which fluctuated from N1,501.22/$ to N1,562.91/$.
“The Dangote domestic lifting is payable in naira based on Afrexim Bank-advised exchange rate,” one of the documents stated.
This arrangement is part of the Federal Government’s naira-for-crude initiative, introduced in October 2024 to reduce dollar demand, strengthen the naira, and ensure consistent supply of crude to local refineries. The Federal Executive Council had, in July 2024, approved the sale of crude oil to domestic refiners in naira for an initial six-month phase.
Although the Dangote refinery temporarily suspended sales of petroleum products in naira in March 2025, citing mismatches in dollar-denominated crude obligations—the Federal Government later reaffirmed the continuation of the naira-for-crude policy, describing it as a sustainable initiative.
Following the policy’s reinstatement, the refinery reduced the ex-depot price of Premium Motor Spirit (PMS) to N835 per litre, its third reduction in under six weeks. The price drop reflects cost adjustments under the naira-based supply agreement.
Data obtained by The PUNCH show that seven crude cargoes—totalling 915,821 barrels—were delivered to the Dangote Refinery within the quarter. The crude was sourced from the Okwuibome field, operated by Sterling Oil Exploration & Energy Production Company (SEEPCO) under a Production Sharing Contract (PSC).
Breakdown of the deliveries indicates:
2 December 2024: Two cargoes aboard Gulf Loyalty—99,737 barrels ($7.47m) and 50,000 barrels ($3.74m)—converted to N17.52bn.
3 January 2025: Two liftings aboard Almi Voyager—216,584 barrels ($17.40m) and 49,500 barrels ($3.97m)—yielded N32.95bn.
15 February 2025: Three transactions aboard Sonangol Kalandula, including a 300,000-barrel shipment, brought in N57.96bn.
In total, the Dangote-related transactions were valued at $70.54 million, converted to N107.44 billion.
However, SEEPCO, the supplier of the crude, has come under scrutiny over alleged anti-labour practices and violations of local content regulations. The Nigerian Content Development and Monitoring Board (NCDMB) recently confirmed sanctions against the company and announced an upcoming performance review. Meanwhile, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has also protested SEEPCO’s alleged abuse of expatriate quotas and discriminatory labour practices.
Beyond domestic sales, NNPCL also earned N228.93 billion from crude exports in Q1 2025, involving 1.95 million barrels sold to foreign refiners under PSC agreements. The transactions involved Egina, Erha, and Forcados Blend grades, with crude lifted aboard vessels such as Baghdad, Aquafreedom, Almi Voyager, and Apache.
24 December 2024: 400,000 barrels of Egina ($31.13m), converted to N45.99bn.
6 January 2025: 550,501 barrels of Erha ($41.23m), yielding N61.50bn.
4 February 2025: 12,000 barrels of Forcados ($916,860), bringing in N1.41bn.
20 February 2025: 990,158 barrels of Egina ($78.15m), converted to N120.04bn.
Unlike domestic sales, these export transactions used lower exchange rates set by the Central Bank of Nigeria, ranging between N1,477.22/$ and N1,535.82/$.
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