NNPC crude supply deal ensures two-year delivery to Dangote refinery, with 60% of allocated crude sold in naira to support domestic fuel stability

The renewed crude supply agreement between the Nigerian National Petroleum Company Limited (NNPCL) and the Dangote Petroleum Refinery will span another two years, ensuring continued delivery of crude oil to the 650,000-barrel-per-day facility in Lekki, Lagos.

Also read: Dangote, NNPC pledge collaboration for Nigeria’s energy security

Signed in August 2025, the agreement will run until 2027 and aims to stabilise local fuel production and strengthen the crude-for-naira initiative.

According to data from the Nigerian National Petroleum Company Limited, approximately 82 million barrels of crude have been allocated to the refinery between October 2024 and October 2025.

Of this total, 60 per cent — about 49.3 million barrels — was sold in naira.

Responding to inquiries, NNPC’s Chief Corporate Communications Officer, Andy Odeh, confirmed that crude supply under the new terms remains active.

He stated that the NNPC, Dangote Refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority continue to reconcile crude volumes and payment values in line with the naira policy.

Crude loading operations for August have been completed. Five cargoes were allocated for both September and October. Odeh noted that vessels are currently at terminal locations for pre-loading procedures.

A Steering Committee led by the Minister of Finance, Wale Edun, reassured the public that the domestic crude supply policy remains fully in place.

The committee emphasised that there would be no disruption to fuel supply or the naira-based sales arrangement.

The Ministry of Finance, CBN, NNPC, and other regulatory stakeholders met with the management of the Dangote Refinery over the weekend to ensure continued compliance and address concerns raised during a brief suspension in PMS sales earlier in the month.

Industry players described the NNPC crude supply deal as a strategic move.

The Independent Petroleum Marketers Association of Nigeria said the arrangement strengthens energy security and ensures a steady flow of petroleum products.

IPMAN spokesperson Chinedu Ukadike added that domestic supply should not be exclusive to one refinery, urging the government to include modular refineries under the same framework.

Ukadike also advised the federal government to resolve disputes involving the refinery and industry unions, warning that prolonged tension could destabilise the downstream sector.

The continuation of the NNPC crude supply deal reflects the federal government’s commitment to domestic refining, currency stability, and fuel price moderation.