The Nigerian National Petroleum Company Limited (NNPC) has sealed a new two-year crude supply agreement with the Dangote Petroleum Refinery, strengthening the government’s push to channel more locally produced crude to domestic refineries.
The deal, signed in August, guarantees a steady flow of crude to the 650,000-barrel-per-day facility in Lekki, Lagos. According to figures obtained from NNPC, a total of 82 million barrels have been allocated to the refinery between October 2024 and October 2025. Of this volume, about 49.3 million barrels—representing 60 percent—were supplied under the naira-for-crude arrangement.
The initiative, introduced by President Bola Tinubu last year, was designed to ease pressure on foreign exchange and support local refineries by allowing crude purchases in naira. Although the refinery briefly suspended sales of petrol in naira earlier this year over supply issues, a presidential intervention restored the arrangement.
Speaking on the new agreement, NNPC’s Chief Corporate Communications Officer, Andy Odeh, confirmed that the state-owned company had continued to make allocations in naira. He said crude cargoes for August, September, and October had already been scheduled, with loading operations in progress. The new sales and purchase contract runs until 2027.
The Steering Committee on the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative—chaired by Finance Minister Wale Edun—also affirmed that the deal remains intact. The committee, which includes representatives from the Budget and Economic Planning Ministry, the Central Bank, the Federal Inland Revenue Service, Afreximbank, and the Dangote refinery, assured Nigerians that there would be no disruption to fuel supply.
Oil marketers have welcomed the development, saying it will stabilize product availability across the country. The Independent Petroleum Marketers Association of Nigeria (IPMAN) urged the government to extend similar crude supply commitments to modular refineries, noting that relying on imported crude undermines energy security.
Industry stakeholders also called on the Federal Government to publish a formal policy document to prevent further disputes between the refinery and oil workers’ unions, warning that prolonged disagreements could threaten economic stability.
With this renewed partnership, Dangote is expected to ramp up local refining output, reducing Nigeria’s dependence on imported crude and strengthening domestic fuel supply.
