Dangote Refinery to Halt Fuel Supply to Nigerian Market as Naira-for-Crude Deal Ends

The Dangote Refinery will stop loading petroleum products for the Nigerian market due to stalled negotiations over the naira-for-crude deal, TheCable has learned.

However, sources revealed that the refinery will continue loading products for export, as it currently sources all its crude from the international market in dollars.

The refinery had been selling to Nigerian marketers in naira under an agreement with the Nigerian National Petroleum Company (NNPC) Ltd., which allowed it to buy crude in local currency. That deal has now expired.

On March 10, TheCable reported that NNPC had discontinued the naira-for-crude arrangement with Dangote Refinery and other local refineries. However, hours later, Olufemi Soneye, NNPC’s chief corporate communications officer, clarified that the current deal, which began in October 2024, would officially expire at the end of March.

Soneye added that negotiations are ongoing for a new agreement with Dangote Petroleum Refinery. He also noted that since October 2024, NNPC has supplied over 48 million barrels of crude to the refinery, bringing the total to more than 84 million barrels since the facility began operations in 2023.

The naira-for-crude arrangement was initially introduced to ensure stable fuel supply, reduce Nigeria’s reliance on costly petroleum imports, and eventually lower pump prices. However, with no progress in securing a new deal, the refinery may soon stop supplying fuel to the domestic market.