The Nigerian National Petroleum Company Limited (NNPC) has signed a new two-year crude sales and purchase agreement with the Dangote Petroleum Refinery, ensuring the steady supply of feedstock to the 650,000-barrel-per-day facility in Lekki, Lagos. The deal, sealed in August 2025, will run until 2027.
According to details obtained by The PUNCH, a total of 82 million barrels of crude oil have been allocated to the refinery between October 2024 and October 2025, with 60% of the allocation — about 49.3 million barrels — sold in naira under the Federal Government’s Crude-for-Naira Initiative.
Dangote Refinery had recently suspended the sale of petrol in naira, citing exhaustion of its crude-for-naira allocation. However, following the intervention of the Naira-for-Crude Technical Committee, chaired by Zacch Adedeji, sales were restored.
Speaking on the new deal, NNPC’s Chief Corporate Communications Officer, Andy Odeh, said the state-owned oil company remains committed to supplying crude to Dangote in line with the initiative. “In August, three naira crude cargoes were allocated, while five cargoes each were scheduled for September and October. September loading operations are ongoing with two vessels currently at terminals for pre-loading formalities,” Odeh stated.
The Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has also reaffirmed that the naira-for-crude policy will continue. A statement by the Finance Ministry’s spokesperson, Mohammed Manga, assured Nigerians of uninterrupted fuel supply and domestic market stability.
The arrangement, ordered by President Bola Tinubu last year, was introduced to ease crude access for local refineries, starting with Dangote. Despite occasional supply shortfalls, the policy has been credited with helping lower feedstock costs and strengthening Nigeria’s energy security.
With the fresh two-year agreement in place, Dangote Refinery is expected to receive more consistent crude supply in the coming months, reducing reliance on U.S. imports and stabilizing domestic petroleum product availability.
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