The Nigerian National Petroleum Company (NNPC) Limited has confirmed that it is in talks with Dangote Petroleum Refinery to establish a new naira-for-crude agreement. This development comes amid concerns that Nigerians may soon face another hike in petrol prices, following reports that NNPC has halted its naira-for-crude deal with Dangote and other local refineries.

The initial agreement between NNPC and Dangote Refinery was a six-month contract, set to expire in March 2025. Under this agreement, NNPC has supplied over 48 million barrels of crude oil to Dangote Refinery since October 2024, with a total of 84 million barrels delivered since the refinery began operations in 2023.

In a statement, NNPC's Chief Corporate Communications Officer, Olufemi Soneye, clarified that the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. Discussions are currently ongoing towards emplacing a new contract, Soneye added.

The news of the potential new agreement comes as a relief to many Nigerians, who were bracing themselves for another fuel price hike. The halt in the naira-for-crude deal with Dangote and other local refineries had raised concerns about the potential impact on fuel prices in the country.

It is worth noting that NNPC has reaffirmed its commitment to providing crude oil for local refining, emphasizing that supply will be based on mutually agreed terms and conditions. This commitment is crucial in ensuring that Nigeria's energy needs are met, while also promoting the growth of the local refining industry.

The development also highlights the importance of the partnership between NNPC and Dangote Refinery in meeting Nigeria's energy demands. Dangote Refinery, which began operations in 2023, has been a significant player in the country's refining industry, and the partnership with NNPC has been instrumental in ensuring a steady supply of crude oil.

As the negotiations for the new agreement continue, industry experts will be watching closely to see how the deal will impact the energy sector in Nigeria. With the country's energy needs continuing to grow, the success of the partnership between NNPC and Dangote Refinery will be crucial in ensuring that Nigerians have access to affordable and reliable energy.