Dangote, Foreign Refineries Buy Over N300 Billion Worth of Crude Oil From NNPCL in 3 Months
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Nigerian National Petroleum Company Limited (NNPCL) made N336.37 billion from crude oil sales in the first quarter of 2025. Over 32% of these sales were made to the Dangote Petroleum Refinery.
This information came from internal NNPCL documents presented during Federation Account Allocation Committee (FAAC) meetings.
Source: UGC
The documents revealed that crude oil worth N107.44 billion was supplied to the Dangote refinery between January and March 2025. The oil was sold at prices ranging from $74.87 to $80.34 per barrel, using exchange rates between N1,501.22 and N1,562.91 to the dollar.
It was also noted that the transactions followed exchange rates provided by the African Export-Import Bank.
NNPCL earns over N107bn from crude sales to Dangote Refinery
The NNPCL earned N107.44 billion from crude oil sales to the Dangote Petroleum Refinery in the first quarter of 2025, according to documents obtained by The PUNCH.
These sales were part of a broader crude oil trading programme that saw the company supply 915,821 barrels to the refinery between January and March.
The invoices tied to these deliveries had due dates ranging from January 16 to March 22, 2025. The first cargo, delivered aboard Gulf Loyalty, consisted of two batches lifted on December 2, 2024.
One shipment contained 99,737 barrels priced at $74.87 per barrel, earning $7.47 million or N11.67 billion using an exchange rate of N1,562.91. The second batch included 50,000 barrels at the same price, worth $3.74 million or N5.85 billion.
On January 3, 2025, another vessel, Almi Voyager, carried two shipments due for payment on February 7. These included 216,584 barrels sold at $80.34 per barrel, valued at $17.40 million or N26.82 billion at N1,541.36/$, and a smaller shipment of 49,500 barrels worth $3.97 million or N6.13 billion.
Further deliveries took place on February 15 aboard the Sonangol Kalandula. One batch of 50,000 barrels was priced at $75.90 per barrel, earning $3.79 million or N5.69 billion using a rate of N1,501.22/$, while another shipment of 300,000 barrels brought in $22.77 million or N34.18 billion.
The final listed delivery on the same vessel involved 150,000 barrels, generating $11.38 million or N17.09 billion.
All prices were set in dollars and converted using naira exchange rates ranging from N1,501.22 to N1,562.91 per dollar, based on guidance from the African Export-Import Bank (Afreximbank).
NNPCL rakes in additional N228bn from foreign crude sales
Aside from the Dangote transactions, NNPCL also earned N228.93 billion from crude oil exports in Q1 2025. These exports involved four separate shipments from the Egina, Erha, and Forcados Blend fields, managed under the Production Sharing Contract (PSC) framework.
The first shipment was 400,000 barrels of Egina crude lifted on December 24, 2024, aboard Baghdad, priced at $77.83 per barrel and due for settlement on January 28, 2025. The sale generated $31.13 million or N45.99 billion using an exchange rate of N1,477.22/$.
Another major transaction saw 550,501 barrels of Erha crude lifted on January 6, 2025, aboard Aquafreedom. This sale was valued at $41.23 million or N61.50 billion at N1,491.49/$.
On February 4, 2025, a smaller cargo of 12,000 barrels of Forcados Blend was transported aboard Almi Voyager and sold for $916,860, yielding N1.41 billion.
The highest-volume sale occurred on February 20, when 990,158 barrels of Egina crude were shipped aboard Apache, valued at $78.15 million and converted to N120.04 billion.
The total revenue from these four foreign transactions was $151.43 million. Unlike the Dangote sales, these used lower exchange rates ranging from N1,477.22 to N1,535.82 as provided by the Central Bank of Nigeria.
This variation in exchange rates shows the challenges NNPCL faces in managing both export revenues and local supply obligations amid ongoing naira volatility.
FG issues more refinery licences
The Nigerian government has granted 47 Licenses to Establish (LTE) and 30 Licenses to Construct (LTC) refineries within the past 12 months.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), this action is a major step in increasing the country’s refining capacity and ensuring a steady supply of petroleum products.
Farouk Ahmed, the CEO of NMDPRA, revealed that the 47 licenses collectively represent a refining capacity of nearly three million barrels per day.
Source: Facebook
To mitigate supply shocks and boost Nigeria’s energy security, the Nigerian government plans to build a national strategic petroleum products stockpile, modelled after the US crude reserve, to hedge the economy against global market disruptions.
S&P Global says Dangote petrol is too pricy
In related news, Legit.ng earlier reported that the price of petroleum products from the Dangote Refinery was noted as one of the reasons petroleum product imports persisted in Nigeria.
S&P Global, an American financial analytics company, disclosed in its recent report that Dangote’s price reduction was not significant enough relative to the global crash in crude prices.
The mega refinery reduced petrol and other petroleum product prices several times, creating a price war with industry leaders.
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Source: Legit.ng
