NNPC Signs Two-Year Crude Supply Deal with Dangote Refinery to Stabilize Nigerian Fuel Market

Nigeria's National Petroleum Company Limited (NNPC) and the Dangote Petroleum Refinery have signed a new two-year crude oil supply agreement to ensure steady crude deliveries to the refinery in Lekki, Lagos. The deal supports the Federal Government's Crude-for-Naira initiative, which aims to stabilize domestic fuel prices and reduce dependence on imported crude by allocating crude oil sales in local currency. From October 2024 to October 2025, 82 million barrels of crude have been allocated to the refinery, with 60 percent of this supplied in naira. The agreement, signed in August, follows a brief suspension of petrol sales in naira by Dangote Refinery due to the exhaustion of its local-currency allocation, which was reversed after government intervention. The supply arrangement is periodically reconciled among NNPC, Dangote Refinery, and regulatory authorities to ensure continued product supply in naira. This partnership is seen as crucial for maintaining domestic energy security and supporting the refinery's 650,000-barrel-per-day capacity.