NNPC, Dangote Refinery Ink New Two-Year Crude Supply Deal to Boost Domestic Fuel Stability

The Nigerian National Petroleum Company Limited (NNPC) has signed a fresh two-year crude oil supply agreement with Dangote Petroleum Refinery, ensuring a steady feedstock for the nation’s largest refinery. The deal, signed last month, covers the 650,000-barrel-per-day facility in Lekki, Lagos, and aligns with the Federal Government’s push to prioritize local crude supply, particularly in naira, for domestic consumption.

According to NNPC, about 82 million barrels of crude have been earmarked for the refinery from October 2024 to October 2025, with roughly 60 percent (49.3 million barrels) allocated in naira. This comes after the Dangote refinery briefly halted petrol sales in naira, citing exhaustion of its local crude allocation. However, intervention by the Naira-for-Crude Technical Committee quickly resolved the issue, allowing sales to resume in the local currency.

NNPC’s Chief Corporate Communications Officer, Andy Odeh, emphasized that crude allocation in naira continues to be reconciled periodically with Dangote and the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Odeh explained that the new sales and purchase agreement runs until 2027 and includes multiple naira-denominated cargoes already loaded or scheduled for loading between August and October 2025.

The development has drawn support from both the government and oil marketers. The Federal Government’s Steering Committee on the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative reassured Nigerians that there will be no disruption in fuel supply. Industry leaders, including the Independent Petroleum Marketers Association of Nigeria, welcomed the agreement, noting it would enhance energy security and stabilize domestic fuel prices.

While Dangote’s media team has not commented further, stakeholders emphasize the importance of extending similar support to modular refineries. Independent marketers also called on the government to formalize solutions to labor disputes at the refinery, warning that unresolved crises could threaten Nigeria’s broader economy and fuel supply chain.

source: punch