Table of Contents
Dangote Petroleum Refinery, owned by Africa’s richest man, Aliko Dangote, has signed a new two-year crude oil supply agreement with Nigeria’s state-owned Nigerian National Petroleum Company (NNPC) Limited. The deal will ensure crude flows to the 650,000-barrel-per-day Lagos refinery and supports the government’s push to strengthen domestic fuel availability.
NNPC said it has allocated about 82 million barrels to the refinery between October 2024 and October 2025, with roughly 60 percent—49 million barrels—sold in naira under the Federal Government’s crude-for-naira initiative.
Agreement secures supply through 2027
The refinery had briefly paused petrol sales in naira earlier this year after running out of its allocation. A technical committee intervened, allowing sales to resume within hours. Andy Odeh, NNPC’s Chief Corporate Communications Officer, confirmed that both parties signed a new sales and purchase agreement valid until 2027. “NNPC Limited has continued to allocate crude to Dangote refinery in naira for the sale of products in the domestic market,” he said.
Odeh added that three naira-denominated cargoes were allocated in August, with five more each for September and October. Crude loading for August has been completed, while September operations are underway, with two vessels at terminals for pre-loading inspections.
The government’s Steering Committee on Domestic Crude Oil and Refined Products Sales in Local Currency, chaired by Finance Minister Wale Edun, said the brief suspension of the naira-for-crude arrangement had been resolved. “There will be no disruption in the supply of refined petroleum products across the country,” the committee said in a statement.
Local marketers praise the agreement
Industry players welcomed the renewed deal as a step toward greater energy stability. Hammed Fashola, vice president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said the agreement “will bring stability” if fully implemented.
IPMAN spokesperson Chinedu Ukadike emphasized the need to support modular refineries, noting, “You cannot be exporting crude while Dangote is importing. By supplying local refineries, we can avoid shortages at the pump.”
Labor tensions underline the stakes
The agreement comes amid tensions between the refinery and Nigeria’s influential oil union. Over the weekend, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) accused Dangote Refinery of anti-labor practices and ordered members in major oil firms—including Chevron, TotalEnergies, Seplat, Shell Nigeria Gas, and Oando—to halt crude deliveries.
Dangote fired back, accusing the union of “serving the interests of a cabal of oligarchs” rather than workers. A Nigerian court has since halted the planned strike, citing risks to national fuel supply.
For Dangote, whose fortune Bloomberg estimates at $29 billion, a steady crude supply is essential. The refinery has previously relied on U.S. crude to fill gaps in local production. With this agreement, both the government and private sector hope to reduce import dependence and improve domestic fuel availability.
