A fresh dispute has emerged between the Nigerian National Petroleum Company Limited (NNPC) and the Dangote Petroleum Refinery over the Federal Government’s naira-for-crude initiative. NNPC has firmly denied claims that it withheld crude oil supplies meant for the refinery, insisting that every available cargo allocated under the programme was delivered as agreed. The clarification comes amid growing concerns about fuel pricing and the future of naira-denominated petroleum transactions in Nigeria.
The controversy intensified after a senior Dangote Group official revealed that the refinery has been receiving only about four million barrels of crude oil monthly under the arrangement, significantly below the roughly 13 million barrels reportedly expected following President Bola Tinubu’s directive in 2024. According to the refinery, the reduced supply has made it difficult to sustain fuel sales in naira, prompting a shift to dollar-based transactions and a stronger focus on exporting refined products to generate foreign exchange.
Responding to the concerns, NNPC spokesperson Andy Odeh stated that the national oil company has fulfilled all of its obligations under the naira-for-crude arrangement. He explained that NNPC allocated 100 per cent of all available naira-denominated crude cargoes to the Dangote refinery in 2026 and stressed that factors such as crude availability, nomination schedules, and refinery operations influence actual deliveries. Odeh also emphasized that NNPC, as a shareholder in the refinery, has a vested interest in ensuring the facility operates at full capacity.
Despite these assurances, Dangote maintains that the volumes supplied remain insufficient. The refinery argues that it cannot ignore market realities, especially as imported petroleum products continue to enter the local market. Under its revised strategy, the company says it will process any crude received through the naira-for-crude arrangement and provide equivalent refined products in naira through NNPC, while expanding exports to improve foreign exchange earnings.
The disagreement comes at a sensitive time for consumers, with petrol prices in Abuja rising to between ₦1,250 and ₦1,280 per litre and some filling stations temporarily shutting down due to supply challenges. Energy experts say the refinery’s decision to price products in dollars reflects global oil market realities rather than a direct threat to consumers. However, they warn that fuel prices will increasingly depend on international crude oil prices and the naira-dollar exchange rate, making stability in both areas crucial for Nigerians already grappling with rising energy costs.
source: punch
