The Nigerian National Petroleum Company Limited has signed a new two-year crude supply agreement with the Dangote Petroleum Refinery, ensuring a steady supply of crude to the 650,000-barrel-per-day refinery located in Lekki, Lagos.

This deal aligns with the Federal Government’s determination to supply more crude to the facility, especially in naira.

According to the Chief Corporate Communications Officer of NNPC, Andy Odeh, the company has continued to allocate crude to the refinery in naira.

NNPC, Dangote refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority periodically reconcile the volume and cost of crude oil supplied in naira commensurate with the crude delivered.

Odeh stated, “In line with the FGN Crude for Naira Initiative, NNPC Limited has continued to allocate crude to Dangote refinery in naira for the sale of products in the domestic market.” He added that NNPC and Dangote refinery negotiated and signed a new sales and purchase agreement that would terminate in 2027.

The NNPC allocated three naira crude cargoes to the refinery in August and five cargoes for September and October. Crude loading operations for August have been completed, while September loading operations are currently underway with two vessels presently at terminals undergoing pre-loading formalities.

In total, from October 2024 to October 2025, a total of 82 million barrels of crude have been allocated to the refinery, with 60% of this total (49.3 million barrels) being 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 the Coordinating Minister of the Economy, Mr. Wale Edun, assured Nigerians that the purported suspension of the naira-for-crude oil arrangement has been amicably resolved.

“There will be no disruption in the supply of refined petroleum products across the country. For the avoidance of doubt, the committee reassured that the crude oil for the naira initiative will continue,” the committee said.

Oil marketers described the deal as a welcome development, saying it would ensure a steady supply of fuels into the local market.

The Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, stated, “It is a good development. It will bring stability, sort of. We all know the impact of that when the programme started. Everybody was happy about it. If they can renew it and get it going on, it is good for the system; it will bring stability.”

Similarly, IPMAN spokesman Chinedu Ukadike commended the move but advised that modular refineries should not be left behind.

“It is good news. NNPC should continue to supply Dangote crude oil. You cannot be exporting crude while Dangote is importing crude. By supplying crude oil to the Dangote refinery, we can have an uninterrupted supply of petroleum products in our filling stations, and the masses will not suffer,” Ukadike said.