The Nigerian National Petroleum Company Limited (NNPC) sealed a two-year agreement in August 2025 to deliver crude oil to the Dangote Refinery in Lekki, Lagos, advancing Nigeria’s local refining ambitions.
Supply Details
From October 2024 to October 2025, NNPC will provide 82 million barrels to the 650,000-barrel-per-day facility.
About 49.3 million barrels (60%) will be paid in naira, with three cargoes delivered in August and five each planned for September and October.
Naira-First Policy
The deal supports President Bola Tinubu’s 2024 initiative to prioritize naira transactions for crude, reducing reliance on imported fuel.
After initial disruptions in naira-based sales, a technical team resolved issues for smooth deliveries.
NNPC’s Commitment
Spokesperson Andy Odeh affirmed ongoing naira-based supplies.
NNPC collaborates with Dangote and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to track volumes and costs, aiming for consistent fuel availability until 2027.
Government Backing
A committee chaired by Finance Minister Wale Edun, with Central Bank and Afreximbank members, met to ensure uninterrupted fuel supply, reinforcing the naira-for-crude strategy.
Industry Praise
Oil marketers, including Hammed Fashola from the Independent Petroleum Marketers Association, hailed the deal for stabilizing fuel supply.
Chinedu Ukadike called for extending the policy to modular refineries to cut imports further.
Why It Matters
This agreement bolsters Nigeria’s energy independence, eases foreign currency strain, and tackles Dangote’s prior supply issues, strengthening the economy.
What’s Ahead
Steady crude deliveries could stabilize fuel prices in 2025, but resolving ongoing PENGASSAN labor disputes is crucial to avoid disruptions.
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