Dangote Refinery To Halt Local Fuel Supply Amid Stalled Naira-for-Crude Deal

Dangote Refinery has announced that it will stop supplying petroleum products to the Nigerian market due to the stalled renegotiation of the naira-for-crude deal with the Nigerian National Petroleum Company (NNPC) Ltd.

According to THECABLE, sources disclosed that the refinery will continue to load petroleum products for export, as it currently sources its crude stock from the international market in dollars.

The refinery’s decision to halt local supply is a direct result of the ended naira-for-crude deal, which allowed it to purchase crude oil in naira and sell petroleum products to Nigerian marketers in the local currency.

On March 10, TheCable reported that NNPC had discontinued the naira-for-crude deal with Dangote refinery and other local refineries. However, NNPC’s chief corporate communications officer, Olufemi Soneye, later clarified that the current deal would expire at the end of March.

“The current deal, which began in October 2024, will expire at the end of March,” Soneye said. “Negotiation is ongoing for a new naira-for-crude deal with Dangote Petroleum Refinery.”

Soneye also revealed that NNPC had supplied over 84 million barrels of crude oil to Dangote refinery since its commencement of operations in 2023, with over 48 million barrels supplied since October 2024.

The naira-for-crude deal was initially agreed upon to improve local supply, save the country millions of dollars in petroleum product imports, and eventually reduce pump prices.

THECABLE