“NNPC, Federal Government Secure Fresh Crude Supply Deal with Dangote Refinery”

The Nigerian National Petroleum Company Limited (NNPC) has entered into a new two-year crude supply agreement with the Dangote Petroleum Refinery to guarantee a steady flow of crude to the 650,000-barrel-per-day facility in Lekki, Lagos.

The deal, signed in August 2025, aligns with the Federal Government’s Crude-for-Naira Initiative aimed at stabilizing domestic fuel supply and strengthening the local currency.

According to NNPC, a total of 82 million barrels of crude have been allocated to the refinery from October 2024 to October 2025. Of this volume, 60 percent (49.3 million barrels) was supplied in naira.

This move follows a brief disruption in September when Dangote Refinery halted petrol sales in naira after exhausting its naira crude allocation. The issue was later resolved by the government’s Naira-for-Crude Technical Committee, leading to the resumption of sales.

NNPC’s Chief Corporate Communications Officer, Andy Odeh, confirmed that crude allocations continue to be reconciled in naira, adding that the new agreement runs until 2027. “In August, NNPC allocated three crude cargoes to the refinery, and five each for September and October. While August loading has been completed, September operations are ongoing with vessels at the terminals,” he explained.

The Federal Government’s Domestic Crude Oil and Refined Products Sales in Local Currency Steering Committee, chaired by Finance Minister Wale Edun, also assured Nigerians that there would be no disruption in local fuel supply, reaffirming the government’s commitment to energy security and price stability.

Oil marketers have welcomed the deal, describing it as vital to ensuring fuel availability and reducing dependence on imported crude. Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, hailed it as “a good development that will bring stability.” IPMAN spokesperson, Chinedu Ukadike, urged the government to also extend crude supply benefits to modular refineries to prevent overreliance on Dangote.

The renewed agreement is expected to boost local refining capacity, reduce fuel imports, and safeguard Nigeria’s domestic energy market.