Dangote Refinery halts fuel supply to Nigerian market as Naira-for-crude deal stalls
Dangote Refinery has suspended the loading of petroleum products for the Nigerian market due to stalled negotiations over the naira-for-crude deal, sources confirmed.
However, the refinery will continue to supply fuel for export, as it currently procures all its crude stock from the international market in dollars.
The refinery had been selling fuel to Nigerian marketers in naira under an agreement with the Nigerian National Petroleum Company (NNPC) Ltd., which allowed it to buy crude in the local currency. That agreement has now expired.
Earlier, on March 10, TheCable reported that the NNPC had ended the naira-for-crude deal with Dangote and other local refineries. However, Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, clarified that the current agreement, which began in October 2024, remains valid until the end of March 2025.
He also confirmed that negotiations for a new deal with Dangote Petroleum Refinery are ongoing.
According to Soneye, since October 2024, the NNPC has supplied Dangote Refinery with over 48 million barrels of crude oil, and a total of 84 million barrels since the refinery began operations in 2023.
The naira-for-crude arrangement was introduced to improve local supply, reduce the cost of petroleum product imports, and ultimately lower pump prices.
However, with the expiration of the deal, the refinery’s continued supply to the domestic market remains uncertain.
