The Nigerian National Petroleum Company Limited (NNPC) has signed a new two-year crude oil supply agreement with the Dangote Petroleum Refinery to guarantee steady feedstock to the 650,000-barrel-per-day facility in Lekki, Lagos.
The deal, sealed in August, aligns with the Federal Government’s Crude-for-Naira Initiative, which prioritises crude supply to local refineries in naira. According to NNPC data, 82 million barrels of crude have been allocated to Dangote Refinery from October 2024 to date, with 60 per cent about 49.3 million barrels sold in naira.
The Chief Corporate Communications Officer of NNPC, Andy Odeh, confirmed the arrangement, stating that the agreement would run until 2027. “In line with the FGN Crude for Naira Initiative, NNPC Limited has continued to allocate crude to Dangote refinery in naira for the sale of products in the domestic market,” he said.
He explained that three naira crude cargoes were allocated in August, while five cargoes each were earmarked for September and October. Crude loading operations for August have been completed, with September loadings underway.
The renewed deal comes weeks after Dangote temporarily halted petrol sales in naira, citing an exhausted allocation. The suspension was reversed following the intervention of the Naira-for-Crude Technical Committee, chaired by the Chairman of the Federal Inland Revenue Service, Zacch Adedeji.
The Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, chaired by the Minister of Finance, Wale Edun, has assured Nigerians that the programme will continue without disruption.
Oil marketers have welcomed the agreement. The Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, described it as a step toward energy security, while IPMAN spokesman, Chinedu Ukadike, urged government to also prioritise modular refineries.
“It is good news. NNPC should continue to supply Dangote crude oil. You cannot be exporting crude while Dangote is importing crude. By supplying crude oil to the Dangote refinery, we can have an uninterrupted supply of petroleum products,” Ukadike said.
The crude-for-naira arrangement, introduced by President Bola Tinubu in 2024, was designed to stabilise the domestic fuel market and reduce reliance on imported crude. With the renewed agreement, Dangote is expected to get more local crude supplies going forward.
