Dangote Refinery will stop supplying petroleum products to the Nigerian market as negotiations over the naira-for-crude deal remain unresolved. However, sources confirm the refinery will continue exporting fuel, as it currently sources crude oil from the international market in dollars.
Under the previous agreement with the Nigerian National Petroleum Company (NNPC) Ltd., Dangote Refinery purchased crude in naira and, in turn, sold refined products to local marketers in the same currency. That arrangement has now ended, disrupting local fuel supply.
On March 10, reports emerged that NNPC had discontinued the naira-for-crude deal with Dangote Refinery and other local refiners. However, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, later clarified that the existing deal, which began in October 2024, will officially expire at the end of March. He added that negotiations for a new agreement with Dangote Refinery are ongoing.
Since October 2024, NNPC has supplied over 48 million barrels of crude oil to the refinery, with a total of 84 million barrels delivered since operations began in 2023.
The naira-for-crude arrangement was initially designed to enhance local fuel supply, reduce reliance on costly imports, and lower pump prices. With the deal now stalled, uncertainty looms over the affordability and availability of fuel in Nigeria.
