Fresh Two-Year Crude Oil Agreement Signed Between NNPC And Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPC) has entered into a fresh two-year crude supply agreement with Dangote Petroleum Refinery, aimed at ensuring a steady flow of crude to the 650,000-barrel-per-day facility in Lekki, Lagos.

The agreement, signed in August, forms part of the Federal Government’s plan to strengthen the crude-for-naira initiative. According to details from NNPC, about 82 million barrels of crude have been allocated to the refinery between October 2024 and October 2025, with 60 per cent—equivalent to 49.3 million barrels—sold in naira.

The deal follows recent concerns after Dangote refinery temporarily halted petrol sales in naira, citing exhaustion of its crude-for-naira allocation. The intervention of the Naira-for-Crude Technical Committee restored naira-denominated petrol sales, with NNPC reaffirming its commitment to the initiative.

NNPC spokesperson Andy Odeh confirmed that crude allocations continue to be reconciled with Dangote and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to match delivery volumes with naira payments. He noted that three naira cargoes were supplied in August, with five allocated each for September and October.

From October 2024 to October 2025, the refinery is set to receive a total of 82 million barrels, with the majority designated as naira cargoes.

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, assured Nigerians that the naira-for-crude arrangement remains intact and will not disrupt fuel supply. The committee, which includes representatives from NNPC, the Central Bank of Nigeria, Afreximbank, and the refinery, emphasised the government’s commitment to energy security and market stability.

Oil marketers welcomed the development, noting that steady crude allocations to Dangote will reduce reliance on imports and ensure continuous supply of petroleum products. The Independent Petroleum Marketers Association of Nigeria also urged that modular refineries be factored into the domestic crude allocation framework.

With the renewed agreement, the Dangote refinery is expected to receive increased local crude supply, boosting Nigeria’s drive to achieve energy security, stabilise fuel availability, and strengthen the naira.