The Dangote Petroleum Refinery and the Nigerian National Petroleum Company Limited ( NNPCL ) have inked a new two-year contract for the supply of crude oil. According to report, the agreement reached last month would guarantee a consistent flow of crude to the refinery in Lekki, Lagos, which processes 650,000 barrels per day.
Furthermore, it was learnt that the agreement is consistent with the Federal Government’s resolve to provide the facility with more crude, particularly in naira. The was found that around 82 million barrels of crude have been allotted to the refinery from October 2024 to date.
Recall that the Dangote refinery recently announced stopping petrol sales in naira, citing the exhaustion of its crude-for-naira allocation as the reason. However, hours later, the Chairman of the Naira-for-Crude Technical Committee intervened, and the company announced the resumption of PMS sales in naira. Of the 82 million barrels, 60%, or 49.3 million barrels, were sold to the refinery in naira, according to information obtained from NNPC on Monday.
Andy Odeh, NNPC’s Chief Corporate Communications Officer, told our correspondent that the firm had kept allocating crude to the refinery in naira.
Odeh claims that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NNPC, and the Dangote refinery periodically reconcile the amount and cost of crude oil supplied in naira in proportion to the crude delivered.
According to the spokesperson, a new sales and buy agreement was negotiated and signed by the refinery and the state-owned energy firm, with an expiration date of 2027.
“NNPC Limited has persisted in allocating crude to the Dangote refinery in Naira for the sale of goods in the domestic market, in accordance with the FGN Crude for Naira Initiative.
NNPC Limited, DPRP (Dangote Petroleum Refinery and Petrochemical), and NMDPRA regularly reconcile the volume and cost of product supplied in naira commensurate with the delivered crude based on the aforementioned information.
“A new sales and purchase agreement for a two-year period was negotiated and signed by NNPC and DPRP in August,” Odeh stated. In August, the business sent three naira crude cargoes to the refinery, and in September and October, it sent five cargoes, he noted.
He clarified that while August’s crude loading activities were finished, September’s loading operations are still in progress, with two vessels currently in terminals completing pre-loading procedures.
In August, NNPC allotted three naira crude cargoes, while in September and October of 2025, it allotted five cargoes each. August’s crude loading operations are finished, and September’s loading activities are in progress, with two vessels currently at terminals going through pre-loading procedures.
“A total of 82 million barrels of crude have been allocated to the refinery between October 2024 and October 2025, with naira cargoes accounting for 60 percent of this total (49.3 million barrels),” he said.
Messages asking for more information about the deal have not yet received a response from Dangote’s media team.
Nigerians have been reassured that the alleged suspension of the naira-for-crude oil arrangement has been settled amicably by the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, which is chaired by Mr. Wale Edun, the Coordinating Minister of the Economy and the Minister of Finance.
Mohammed Manga, the Finance Ministry’s Director of Information and Public Relations, said in a statement that the Federal Inland Revenue Service Chairman, Mr. Zacch Adedeji, who also chairs the Technical Committee, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian National Petroleum Company Ltd., the Central Bank of Nigeria, Afreximbank, and the Dangote refinery were all present at a meeting that the committee held over the weekend.
He reiterated that “the nation’s supply of refined petroleum products will not be disrupted.” The committee assured that the crude oil for the naira effort will continue, just to be clear.
“The Federal Government is still totally committed to protecting consumers, ensuring energy security, and preserving stability in the domestic market for petroleum products.”
Amid the Dangote refinery’s crude issue last year, President Bola Tinubu ordered the naira-for-crude deal. The Dangote refinery was to be the first local refinery to purchase the crude designated for local consumption.
Dangote has frequently praised Tinubu for the intervention and its contribution to bringing down the price of crude oil, but it has also lamented the lack of crude supply, which has forced it to depend more on the US for feedstock.
The refinery is anticipated to receive more local crude supplies in the future as a result of the new deal.
Marketers comment on the agreement
Oil marketers responded by calling the agreement a positive step that would guarantee a consistent flow of fuels into the local market. They stated that if the Federal Government completely carries out the local crude supply obligation, Dangote shouldn’t be overly dependent on imported crude.
According to Hammed Fashola, vice president of the Independent Petroleum Marketers Association of Nigeria, the deal would guarantee the nation’s energy security.
It’s a positive development. Sort of, it will offer stability. When the program began, we were all aware of its impact. Everyone was pleased with it. The system will benefit from stability if they can renew it and get it functioning, Fashola stated.
In a same vein, IPMAN spokesperson Chinedu Ukadike applauded the action but cautioned against abandoning the modular refineries. “I am aware that an agreement exists, but I am unsure if it is for two years. Due to this naira-for-crude transaction, Dangote once ceased to supply goods. At last, the presidential committee acted and consented to provide him with crude continuously. I was informed.
“The news is good. Dangote crude oil should be supplied by NNPC. It is impossible for you to export while Dangote imports crude. The people won’t suffer if we supply crude oil to the Dangote refinery, allowing us to maintain a steady supply of petroleum products in our filling stations.
According to Ukadike, “the government should also consider modular refineries in its domestic crude supply obligation. As independent marketers, we are highly committed and service-oriented to ensure there is a continuous flow of petroleum products from our tanks to the end users.”
