The Nigerian National Petroleum Company Limited has signed a crucial two-year crude supply agreement with the Dangote Petroleum Refinery, ensuring uninterrupted feedstock to the 650,000-barrel-per-day facility in Lekki, Lagos. The deal, finalized in August 2025, represents a significant milestone in the Federal Government’s commitment to prioritize domestic crude deliveries and strengthen energy security.
Under the agreement, approximately 82 million barrels of crude have been allocated to the refinery between October 2024 and September 2025, with 60 percent of this volume—49.3 million barrels—supplied in naira as part of the groundbreaking crude-for-naira initiative. NNPC’s Chief Corporate Communications Officer, Andy Odeh, confirmed that the state-owned company allocated three naira crude cargoes to the refinery in August, followed by five cargoes each for September and October 2025.
The agreement comes on the heels of a brief suspension of naira-based petrol sales by Dangote Refinery, which cited depletion of its naira crude allocation. However, swift intervention by the Naira-for-Crude Technical Committee chairman led to the immediate resumption of sales. Odeh explained that NNPC, Dangote Petroleum Refinery and Petrochemical, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority periodically reconcile the volume and cost of crude oil supplied in naira to ensure transparency and accountability.
The new sales and purchase agreement, set to run until 2027, reinforces President Bola Tinubu’s directive to support local refineries with domestic crude supply. Oil marketers have welcomed the development, describing it as a crucial step toward ensuring energy security and stability in the petroleum products market. Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria, emphasized that the deal would bring much-needed stability to fuel supply chains across the country.
Source: businessday.ng, punchng.com