AfriPulse
September 30, 2025 September 30, 2025
The Nigerian National Petroleum Company Limited (NNPCL) has signed a fresh two-year crude supply agreement with the Dangote Petroleum Refinery to guarantee steady feedstock for the 650,000-barrel-per-day plant in Lekki, Lagos.
Details of the deal, which was sealed in August, show that from October 2024 to October 2025, about 82 million barrels of crude were allocated to the refinery.
Out off this figure, 49.3 million barrels, representing 60 percent, were sold in naira under the Federal Government’s Crude-for-Naira Initiative.
The arrangement cemented after recent disruptions in petrol sales by the refinery, which had cited a shortage of crude-for-naira allocations before government intervention restored supplies.
Under the new business deal, crude cargoes will continue to be delivered in naira, with NNPC, Dangote refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority jointly reconciling volumes and costs.
As at press time, NNPC has allocated three crude cargoes to the refinery in August and five each for September and October.
While August loading was completed, September operations are still ongoing with vessels currently at terminals for pre-loading checks.
The agreement will remain valid until 2027 and is expected to provide greater stability for the refinery, which had at times relied on imported crude from the United States due to limited local supply.
The Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, which is chaired by Finance Minister Wale Edun, assured that the crude-for-naira programme will remain intact.
The committee, which includes the Central Bank, FIRS, NNPC, Afreximbank, and Dangote representatives, pledged that Nigerians will not face disruptions in fuel supply again.
Oil marketers have welcomed the development, describing it as crucial for energy security.
Leaders of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the renewed deal would stabilise the domestic fuel market and reduce reliance on imported crude.
They, however, urged the government to extend similar crude supply obligations to modular refineries to strengthen the local refining sector.
Source: Authorityngr.com | Read the Full Story…
