Dangote Refinery Halts Local Petroleum Supply Amid Naira-for-Crude Deal Stalemate

Dangote Refinery Halts Local Petroleum Supply Amid Naira-for-Crude Deal Stalemate

The Dangote Refinery has reportedly stopped loading petroleum products for the Nigerian market as negotiations over the naira-for-crude oil deal remain stalled. However, the refinery will continue supplying the international market, sourcing crude oil in dollars.

The refinery previously sold petroleum products to Nigerian marketers in naira under an agreement with the Nigerian National Petroleum Company (NNPC) Ltd. However, the NNPC discontinued the deal on March 10, affecting local supply.

Amid reports of a halt in local loading, NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, clarified that the existing deal, which began in October 2024, is set to expire at the end of March, and negotiations for a new agreement are ongoing.

Since October 2024, NNPC has supplied over 48 million barrels of crude oil to Dangote Refinery, totaling more than 84 million barrels since the refinery began operations in 2023. The naira-for-crude arrangement was designed to stabilize supply, reduce Nigeria’s dependence on petroleum imports, and lower pump prices.