The Nigerian National Petroleum Company (NNPC) Limited has signed a new two-year deal for crude oil supply with the Dangote Petroleum Refinery. This ensures a steady supply of crude for the facility in Lekki, Lagos, which can process 650,000 barrels a day.
This agreement, which was completed in August, is really important for the Federal Government’s plan to focus on crude deliveries to the privately owned refinery, especially in naira. This will help improve energy security and stabilize the local fuel supply.
Industry data shows that about 82 million barrels of crude are set aside for the Dangote Refinery from October 2024 to September 2025. Out of this total, 49.3 million barrels, which is 60 percent, will be supplied in naira through the new crude-for-naira program.
The agreement comes after recent tensions related to the refinery’s suspension of naira-based petrol sales, attributed to a depletion of its naira crude allocation. Sales subsequently resumed following the intervention of the chairman of the Naira-for-Crude Technical Committee.
Andy Odeh, who is the Chief Corporate Communications Officer of NNPC, confirmed that the state-owned company is still supplying crude in naira to the refinery. He mentioned that NNPC, Dangote Refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regularly check the amount and value of crude delivered in naira.
“The state-owned energy company and the refinery have successfully negotiated and signed a new sales and purchase agreement that will last until 2027,” Odeh said.
aIn line with the FGN Crude for Naira Initiative, NNPC Limited has reliably supplied crude oil to Dangote Refinery in naira, aimed at facilitating the sale of products within the domestic market.
“In this regard, NNPC, DPRP, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) routinely reconcile the volume and pricing of products provided in naira, which corresponds to the crude that has been delivered,” Odeh explained.
He disclosed that NNPC allocated three naira crude cargoes for August, in addition to five cargoes each for September and October 2025. While the loading operations for August have been completed, the allocations for September are currently underway, with two vessels in the pre-loading phase at the terminals.
Odeh also noted that from October 2024 to October 2025, a total of 82 million barrels of crude have been designated for Dangote Refinery, with 60 percent (49.3 million barrels) being supplied in naira.
This new agreement is set to last until 2027, guaranteeing a consistent supply following recent challenges when Dangote Refinery temporarily ceased naira-based petrol sales due to the exhaustion of its naira crude allocation. Sales were later resumed after federal intervention.