NNPC, Dangote Refinery Sign Two-Year Crude Supply Deal in Naira

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By Alofe Ayomoses

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed a fresh two-year crude oil supply agreement with the Dangote Petroleum Refinery, ensuring steady feedstock for the 650,000-barrel-per-day plant in Lekki, Lagos.

The deal, sealed in August 2025, runs until 2027 and aligns with the Federal Government’s “Crude-for-Naira” initiative, which seeks to strengthen local refining capacity and reduce reliance on imported feedstock.

NNPC’s Chief Corporate Communications Officer, Andy Odeh, confirmed that allocations in naira will continue under the arrangement.

“In line with the FGN Crude-for-Naira Initiative, NNPC Ltd. has continued to allocate crude to Dangote refinery in naira for the sale of products in the domestic market,” Odeh said.

He added that allocations are periodically reconciled with the Dangote refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure proper valuation.

Key Details of the Agreement
• 82 million barrels of crude allocated between October 2024 – October 2025.
• 49.3 million barrels (60%) sold in naira.
• 3 cargoes supplied in August, 5 cargoes each for September and October 2025.
• Crude loading operations for August completed; September loadings ongoing.

Background

The agreement follows recent concerns after Dangote refinery briefly halted petrol sales in naira, citing an exhausted crude-for-naira quota. The suspension was quickly reversed following intervention by the Naira-for-Crude Technical Committee.

The Steering Committee on Domestic Crude Oil and Refined Products Sales in Local Currency, chaired by Finance Minister Wale Edun, assured Nigerians that the programme remains intact.

“The Federal Government remains fully committed to ensuring energy security, protecting consumers, and maintaining stability in the domestic petroleum products market,” the Finance Ministry said in a statement.

Marketers React

Oil marketers welcomed the deal, saying it would improve fuel supply stability.

Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said, “It is a good development. If they can renew it and get it going, it will bring stability.”

Also reacting, IPMAN spokesperson, Chinedu Ukadike stated that, “NNPC should continue to supply Dangote crude oil. You cannot be exporting crude while Dangote is importing. The government should also consider modular refineries in its domestic crude supply obligation.”

Marketers also urged the government to address lingering disputes between Dangote and oil sector unions, warning of potential risks to national energy security.

With the renewed supply agreement, the refinery is expected to receive more local crude, reducing its dependence on US imports. Industry players say the deal could boost energy security, stabilize domestic fuel prices, and support the naira.

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