NNPC, Dangote Refinery Sign Fresh Two-Year Crude Deal

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has signed a new two-year crude oil supply agreement with the Dangote Petroleum Refinery to ensure a steady flow of feedstock to the 650,000-barrel-per-day facility in Lekki, Lagos.

The agreement, finalised in August, runs until 2027 and is aligned with the Federal Government’s Crude for Naira Initiative, designed to allocate crude to local refineries in the local currency to support domestic fuel supply.

Data from NNPC shows that between October 2024 and September 2025, about 82 million barrels of crude were allocated to the refinery. Of this, 60 per cent—roughly 49.3 million barrels—was sold in naira.

Andy Odeh, Chief Corporate Communications Officer of NNPC, explained that allocations are reconciled periodically with Dangote Refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), ensuring crude delivered in naira is matched to refined product volumes supplied domestically.

Industry sources confirmed that NNPC allocated three naira-denominated cargoes in August, with five additional cargoes scheduled for both September and October. Crude loading for August has been completed, while September operations are ongoing with two vessels preparing to load.

Meanwhile, the Steering Committee on Domestic Crude Oil and Refined Products Sales in Local Currency, chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, assured that the crude-for-naira framework remains intact, despite earlier concerns of suspension.

Oil marketers welcomed the deal, describing it as vital for energy security. Hammed Fashola, Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the arrangement would stabilise supply and reduce reliance on imported crude.

Similarly, IPMAN spokesperson Chinedu Ukadike urged the government to extend allocations to modular refineries to broaden local refining capacity. He stressed that continued supply to Dangote Refinery would guarantee uninterrupted fuel availability across the country.