The Nigerian National Petroleum Company Limited (NNPC) has signed a new two-year crude supply agreement with the Dangote Petroleum Refinery, reinforcing efforts to secure domestic energy stability while supporting the government’s crude-for-naira initiative.
The deal, finalized in August, ensures the 650,000-barrel-per-day refinery in Lekki, Lagos, will continue to receive steady crude allocations, with a significant portion priced in naira.
According to NNPC data, about 82 million barrels of crude have been allocated to the refinery between October 2024 and October 2025, with 60 percent, 49.3 million barrels sold in naira.
The new agreement comes after recent tensions when the Dangote refinery briefly halted petrol sales in naira, citing the exhaustion of its crude-for-naira quota. That suspension was quickly resolved following intervention by the Naira-for-Crude Technical Committee, which assured the continuation of the programme.
Speaking to journalists, Andy Odeh, NNPC’s Chief Corporate Communications Officer, confirmed that the agreement is designed to stabilize both crude supply and product pricing in the local market.
“In line with the FGN Crude for Naira Initiative, NNPC Limited has continued to allocate crude to Dangote refinery in naira for the sale of products in the domestic market.
“NNPC and DPRP (Dangote Petroleum Refinery and Petrochemical) signed a new Sales and Purchase Agreement in August, with a two-year tenure ending in 2027.”
Andy Odeh, NNPC’s Chief Corporate Communications Officer
He disclosed that NNPC allocated three-naira cargoes in August and five each for September and October, with crude loading already completed for August and ongoing for September.
Federal Government Reassures Nigerians
To allay public concerns, the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, chaired by Finance Minister Wale Edun, reaffirmed that the programme remains intact.
In a statement, the ministry’s Director of Information, Mohammed Manga, noted that a weekend meeting brought together senior officials, including Budget Minister Atiku Bagudu, FIRS Chairman Zacch Adedeji, representatives of the Central Bank, Afreximbank, and the Dangote refinery.
Manga said, “There will be no disruption in the supply of refined petroleum products across the country.”
“For the avoidance of doubt, the committee reassured that the crude oil for the naira initiative will continue.
“The Federal Government remains fully committed to ensuring energy security, protecting consumers and maintaining stability in the domestic petroleum products market.”
Mohammed Manga, Director of Information
The programme, introduced by President Bola Tinubu in 2024, was designed to ensure that crude earmarked for domestic consumption is supplied to local refineries in naira.
The policy has been credited with stabilizing pump prices by reducing reliance on imported crude but has faced challenges due to supply shortages.
Marketers Welcome the Agreement
Oil marketers have broadly welcomed the deal, describing it as essential for stabilizing supply and ensuring energy security.
Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the new agreement was timely.
“It is a good development. It will bring stability, sort of. We all know the impact of that when the programme started.
“Everybody was happy about it. If they can renew it and get it going on, it is good for the system; it will bring stability.”
Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN)
IPMAN spokesman Chinedu Ukadike also commended the move, while urging the government to extend similar support to modular refineries.
“It is good news. NNPC should continue to supply Dangote crude oil. You cannot be exporting crude while Dangote is importing crude.
“By supplying crude oil to the Dangote refinery, we can have an uninterrupted supply of petroleum products in our filling stations, and the masses will not suffer.”
IPMAN spokesman Chinedu Ukadike
He further called for a government white paper to resolve disputes between Dangote and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), warning that ongoing tensions could undermine national economic stability.
The Dangote refinery, Africa’s largest, is central to Nigeria’s ambitions of achieving fuel self-sufficiency and reducing its reliance on imported petroleum products.
Although the facility has occasionally turned to U.S. suppliers for feedstock, the new NNPC agreement is expected to ensure a more consistent flow of locally sourced crude.
Energy analysts suggest that if fully implemented, the deal could help curb fuel scarcity, reduce foreign exchange pressures, and provide a more stable pricing environment for Nigerian consumers.
With the latest deal, Nigeria appears poised to reinforce its domestic energy security while supporting the long-term viability of its flagship refinery project.
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