The Nigerian National Petroleum Company (NNPC) Limited has signed a fresh two-year crude supply agreement with the Dangote Petroleum Refinery, ensuring steady feedstock to the 650,000-barrel-per-day plant in Lekki, Lagos.

The deal, sealed in August, is part of the Federal Government’s drive to prioritise crude deliveries to the privately owned refinery, particularly in naira, to support energy security and stabilise domestic fuel supply.

According to industry data, about 82 million barrels of crude have been allocated to Dangote Refinery between October 2024 and September 2025. Of this volume, 49.3 million barrels — or 60 percent — were supplied in naira under the crude-for-naira initiative.

The agreement follows recent tension after the refinery suspended naira-based petrol sales citing the depletion of its naira crude allocation. Sales later resumed following intervention by the Naira-for-Crude Technical Committee chairman.

Andy Odeh, NNPC’s Chief Corporate Communications Officer, confirmed that the state-owned company continues to allocate crude in naira to the refinery.

He explained that NNPC, Dangote Refinery, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) periodically reconcile the volume and value of crude delivered in naira.

“The state-owned energy company and the refinery have negotiated and signed a new sales and purchase agreement that will run until 2027,” Odeh said.

“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 this basis, NNPC, DPRP and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) periodically reconcile the volume and cost of product supplied in naira commensurate with the crude delivered,” Odeh explained.

He disclosed that NNPC allocated three naira crude cargoes in August, and five cargoes each for September and October 2025. While loading operations for August have been completed, September allocations are currently underway, with two vessels undergoing pre-loading formalities at terminals.

Odeh added that between October 2024 and October 2025, a total of 82 million barrels of crude had been allocated to Dangote Refinery, with 60 percent (49.3 million barrels) supplied in naira.

The new deal will run until 2027, ensuring continuity of supply following recent concerns when Dangote Refinery briefly suspended naira-based petrol sales citing exhaustion of its naira crude allocation. Sales later resumed after federal intervention.

Dangote’s media team has yet to respond to requests for further details on the arrangement.