The Nigerian National Petroleum Company Limited (NNPC) has signed a new two-year crude supply agreement with Dangote Petroleum Refinery and Petrochemicals, ensuring steady feedstock for the 650,000 barrels-per-day facility in Lekki, Lagos.

The deal, signed in August, will run until 2027 under the Federal Government’s Crude-for-Naira Initiative, which prioritises domestic refineries in crude allocation. According to NNPC, about 82 million barrels have been allocated to Dangote Refinery between October 2024 and October 2025, with 60 percent — roughly 49.3 million barrels — sold in naira.

The renewed pact comes weeks after Dangote briefly suspended petrol sales in naira, citing exhaustion of its crude-for-naira allocation, before resuming following intervention by the Naira-for-Crude Technical Committee.

NNPC’s Chief Corporate Communications Officer, Andy Odeh, confirmed that crude continues to be supplied to Dangote Refinery under the initiative. He disclosed that three naira-denominated cargoes were delivered in August, while five cargoes each were allocated for September and October.

“Crude loading operations for August have been completed, while September loading is ongoing, with two vessels currently at terminals for pre-loading formalities,” Odeh said.

He explained that NNPC, Dangote Refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) regularly reconcile volumes and costs to ensure that crude supplied in naira matches domestic product sales.

The Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative, chaired by Finance Minister Wale Edun, assured that there would be no disruption to the programme.

In a statement, the ministry’s spokesperson, Mohammed Manga, said the weekend meeting included the Ministers of Finance and Budget, the FIRS Chairman, CBN, Afreximbank, NNPC, NMDPRA, and Dangote Refinery.

“The Federal Government remains fully committed to ensuring energy security, protecting consumers, and maintaining stability in the domestic petroleum products market. For the avoidance of doubt, the crude-for-naira initiative will continue,” the statement read.

The initiative, introduced by President Bola Tinubu last year, aims to cut reliance on foreign exchange for crude imports and stabilise local fuel supply.

Oil marketers welcomed the new agreement, describing it as crucial for energy security.

Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, said:
“It is a good development. If sustained, it will bring stability to the system. Everybody was happy when the initiative started, and renewing it will ensure continuity.”

IPMAN spokesperson, Chinedu Ukadike, also applauded the deal but urged government to extend crude allocations to modular refineries.

“You cannot be exporting crude while Dangote is importing crude,” he said. “Supplying Dangote will guarantee uninterrupted fuel supply locally, but modular refineries must also be factored into the domestic crude supply obligation.”

Ukadike further called for a government white paper to resolve ongoing disputes between Dangote Group and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), warning that prolonged crisis could destabilise the sector.