Dangote Refinery has halted fuel supply to Nigeria after the collapse of its naira-for-crude deal with NNPC. With crude now purchased in dollars, fuel exports continue, raising concerns over shortages and price hikes. Stakeholders urge a swift resolution to avoid economic disruptions and ensure domestic fuel availability.
The Dangote Refinery has suspended its supply of petroleum products to the Nigerian market after the collapse of the naira-for-crude agreement with the Nigerian National Petroleum Company (NNPC) Ltd. This move has raised concerns over fuel availability and potential price hikes, as the refinery continues to export fuel while purchasing crude oil exclusively in U.S. dollars.
The naira-for-crude deal, introduced to stabilize fuel supply and reduce dependence on dollar-denominated imports, officially ended as NNPC ceased providing crude to Dangote Refinery in local currency. The agreement, which began in October 2024, is set to expire in March 2025, with ongoing negotiations for a possible renewal.
NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed that over 48 million barrels of crude had been supplied to the refinery since October 2024, bringing the total to over 84 million barrels since its launch in 2023. While discussions for a new deal are ongoing, analysts warn that prioritizing exports could lead to fuel price surges in Nigeria.
With uncertainty looming over the country’s energy security, industry experts and stakeholders are calling for a swift resolution to prevent potential economic disruptions.
