NNPC, Dangote Refinery Sign Fresh Two-year Crude Supply Deal
The Nigerian National Petroleum Company Limited, NNPCL, has signed another two-year crude supply agreement with the Dangote Petroleum Refinery.
The Nigerian National Petroleum Company Limited, NNPCL, has signed another two-year crude supply agreement with the Dangote Petroleum Refinery.
It was gathered that the deal signed last month would ensure the steady supply of crude to the 650,000-barrel-per-day refinery located in Lekki, Lagos, in line with the Federal Government’s determination to supply more crude to the facility, especially in naira.
The PUNCH learned that about 82 million barrels of crude have been allocated to the refinery from October 2024 to date.
Out of the 82 million barrels, 60 per cent, being 49.3 million barrels, was sold in naira to the refinery, according to details obtained from NNPC on Monday.
The Dangote refinery recently announced stopping petrol sales in naira, citing the exhaustion of its crude-for-naira allocation as the reason. But hours later, the Naira-for-Crude Technical Committee Chairman intervened, and the company announced the resumption of PMS sales in naira.
The Chief Corporate Communications Officer of NNPC, Andy Odeh, said the company had continued to allocate crude to the refinery in naira.
According to Odeh, NNPC, Dangote refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority periodically reconcile the volume and cost of crude oil supplied in naira commensurate with the crude delivered.
He maintained that the state-owned energy company and the refinery negotiated and signed a new sales and purchase agreement that would terminate in 2027.
Out of the 82 million barrels, 60 per cent, being 49.3 million barrels, was sold in naira to the refinery, according to details obtained from NNPC on Monday.
The Dangote refinery recently announced stopping petrol sales in naira, citing the exhaustion of its crude-for-naira allocation as the reason. But hours later, the Naira-for-Crude Technical Committee Chairman intervened, and the company announced the resumption of PMS sales in naira.
The Chief Corporate Communications Officer of NNPC, Andy Odeh, said the company had continued to allocate crude to the refinery in naira.
According to Odeh, NNPC, Dangote refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority periodically reconcile the volume and cost of crude oil supplied in naira commensurate with the crude delivered.
He maintained that the state-owned energy company and the refinery negotiated and signed a new sales and purchase agreement that would terminate in 2027.
Odeh's words, "In line with the FGN Crude for Naira Initiative, NNPC Limited has continued to allocate crude to Dangote refinery in naira for the sale of products in the domestic market.
“On the basis of the above, NNPC Limited, DPRP (Dangote Petroleum Refinery and Petrochemical), and NMDPRA periodically reconcile the volume and cost of product supplied in naira commensurate with the crude delivered.
“NNPC and DPRP have negotiated and in August signed a new Sales and Purchase Agreement for a tenure of two years.”
“On the basis of the above, NNPC Limited, DPRP (Dangote Petroleum Refinery and Petrochemical), and NMDPRA periodically reconcile the volume and cost of product supplied in naira commensurate with the crude delivered.
“NNPC and DPRP have negotiated and in August signed a new Sales and Purchase Agreement for a tenure of two years.”
Odeh further said that the company allocated three crude cargoes to the refinery in August and five cargoes for September and October.
He explained that crude loading operations for August had been completed, while September loading operations are currently ongoing with two vessels presently in terminals for pre-loading formalities.
“Consequently, NNPC allocated three naira crude cargoes in August and five cargoes each for September and October 2025. Crude loading operations for August have been completed, while September loading operations are currently underway with two vessels presently at terminals undergoing pre-loading formalities.
“In total, from October 2024 to October 2025, a total of 82 million barrels of crude have been allocated to the refinery, with 60 per cent of this total (49.3 million barrels) being naira cargoes,” he added.
Dangote’s media team has yet to respond to messages seeking further details about the deal.
He explained that crude loading operations for August had been completed, while September loading operations are currently ongoing with two vessels presently in terminals for pre-loading formalities.
“Consequently, NNPC allocated three naira crude cargoes in August and five cargoes each for September and October 2025. Crude loading operations for August have been completed, while September loading operations are currently underway with two vessels presently at terminals undergoing pre-loading formalities.
“In total, from October 2024 to October 2025, a total of 82 million barrels of crude have been allocated to the refinery, with 60 per cent of this total (49.3 million barrels) being naira cargoes,” he added.
Dangote’s media team has yet to respond to messages seeking further details about the deal.
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