The Nigerian National Petroleum Company Limited (NNPC) has signed a new two-year crude oil supply deal with the Dangote Petroleum Refinery, ensuring steady feedstock for the 650,000-barrel-per-day facility located in Lekki, Lagos.
The agreement, finalized in August, is part of the Federal Government’s “Crude-for-Naira Initiative,” designed to prioritize local refineries and stabilize domestic fuel supply. According to details released by NNPC on Monday, about 82 million barrels of crude have been allocated to the refinery between October 2024 and October 2025, with 60 percent — roughly 49.3 million barrels — sold in naira.
This comes after the refinery briefly halted petrol sales in naira earlier this month, citing the exhaustion of its crude-for-naira allocation. The suspension was swiftly resolved following intervention by the Naira-for-Crude Technical Committee, which led to the resumption of sales.
Confirming the new supply arrangement, NNPC’s Chief Corporate Communications Officer, Andy Odeh, said crude cargoes are continuously being allocated to the refinery under the initiative. He explained that the corporation, the Dangote Refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regularly reconcile crude volumes and costs sold in naira.
“In August, NNPC allocated three crude cargoes in naira to the refinery, and five cargoes each were allocated for September and October. While loading for August has been completed, September operations are ongoing with vessels at terminals undergoing pre-loading formalities,” Odeh disclosed.
The Ministry of Finance also reaffirmed government’s commitment to sustaining the policy. In a statement, the Director of Information, Mohammed Manga, said the Steering Committee on Domestic Crude Sales, chaired by Finance Minister Wale Edun, had resolved all concerns about the continuity of the programme.
“There will be no disruption in the supply of refined petroleum products across the country. For the avoidance of doubt, the crude-for-naira initiative will continue,” the statement assured.
Oil marketers welcomed the agreement, describing it as vital for energy security. The Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, said the deal would help stabilize fuel supply nationwide.
“It is a good development that will bring stability. Everyone was happy when the initiative started, and renewing it will ensure continuity in the system,” Fashola noted.
IPMAN spokesman, Chinedu Ukadike, also hailed the move but urged the government to extend similar crude allocations to modular refineries. “Supplying Dangote crude oil ensures uninterrupted fuel supply locally. But government must also integrate modular refineries into the crude supply framework,” he advised.
The deal, which runs until 2027, is expected to significantly reduce Dangote’s reliance on imported crude and enhance Nigeria’s energy security.
