The Nigerian National Petroleum Company Limited (NNPC) has signed a new two-year crude oil sales and purchase agreement with the Dangote Petroleum Refinery.
The deal, finalized in August, will ensure a steady supply of feedstock to the 650,000-barrel-per-day facility located in Lekki, Lagos, until 2027.
According to details obtained from NNPC, a total of 82 million barrels of crude have been allocated to the refinery from October 2024 to date, with 60 percent — equivalent to 49.3 million barrels — sold in naira.
The arrangement falls under the Federal Government’s Crude for Naira Initiative, designed to support domestic refining and guarantee fuel supply to the Nigerian market.
Andy Odeh, Chief Corporate Communications Officer of NNPC, confirmed that crude allocation in naira has continued uninterrupted.
He explained that NNPC, Dangote Refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority periodically reconcile the volume and cost of crude supplied in local currency to ensure alignment with deliveries.
As part of the agreement, three naira-denominated cargoes were allocated in August, while five cargoes were scheduled each for September and October. Loading operations for August have been completed, with two vessels currently at terminals for September allocations.
The Federal Government, through the Steering Committee of the Domestic Crude Oil and Refined Products Sales in Local Currency Initiative chaired by the Minister of Finance, Wale Edun, has assured Nigerians that the programme will continue without disruption.
The committee emphasized its commitment to energy security and market stability.
Oil marketers welcomed the development, describing it as a critical step toward reducing reliance on imported crude.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said the renewed supply deal would help stabilize the downstream market and ensure uninterrupted flow of petroleum products.
The sales and purchase agreement is part of President Bola Tinubu’s directive to prioritize local crude supply to Nigerian refineries, beginning with the Dangote facility.