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Dangote Refinery has halted the supply of petroleum products to the Nigerian market following the collapse of its naira-for-crude deal with the Nigerian National Petroleum Company (NNPC) Ltd, sources have confirmed.
However, the refinery will continue exporting fuel as it currently procures all its crude oil in dollars from the international market.
The naira-for-crude arrangement, which allowed Dangote Refinery to buy crude in local currency and sell refined products to Nigerian marketers in naira, has officially ended.
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The development raises concerns over fuel availability and pricing in the domestic market.
Earlier reports indicated that the NNPC had discontinued the agreement with Dangote and other local refineries, though company officials later clarified that the existing deal, which began in October 2024, is set to expire at the end of March 2025.
Olufemi Soneye, NNPC’s Chief Corporate Communications Officer, confirmed ongoing negotiations for a new agreement.
“NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024,” he stated, adding that the total crude supplied since the facility’s launch in 2023 exceeds 84 million barrels.
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The naira-for-crude deal was initially introduced to stabilise fuel supply, reduce reliance on dollar-denominated imports, and ease pressure on pump prices.
However, with its termination, industry watchers fear that fuel prices may rise further, especially if Dangote Refinery prioritises exports.
As negotiations continue, stakeholders are urging a swift resolution to prevent potential fuel shortages and mitigate economic disruptions.