Dangote Refinery Plans To Halt Petrol Supply Amid Naira-for-Crude Dispute

Dangote Refinery has announced plans to halt the supply of petroleum products to the Nigerian market due to the stalled renegotiation of the naira-for-crude deal with the Nigerian National Petroleum Company (NNPC). This agreement allowed the refinery to purchase crude oil in naira, enabling it to sell refined products to local marketers in the same currency. With the current deal set to expire at the end of March, NNPC confirmed ongoing negotiations for a new arrangement, but significant progress has not been made. As a result, the refinery will continue to source its crude internationally and focus on exports, raising concerns about potential fuel shortages in Nigeria. Analysts warn that the disruption could exacerbate fuel scarcity and increase reliance on imported products, undermining Nigeria's energy security goals. The naira-for-crude initiative was initially intended to stabilize local fuel supply and reduce costs for consumers.