By Atoyebi Nike
The Nigerian National Petroleum Company (NNPC) Limited has reached a new agreement with the Dangote Petroleum Refinery to extend crude oil supplies for another two years.
According to NNPCL spokesman Andy Odeh, the state oil company will deliver five cargoes each in September and October under terms agreed last month. While he did not specify the number of shipments expected after October, the deal consolidates ongoing cooperation between both entities.
Since October 2024, the 650,000-barrel-per-day Dangote Refinery has received about 82 million barrels of crude, with 60 percent of those cargoes transacted in naira, the NNPC confirmed. The arrangement stems from Nigeria’s naira-for-crude initiative, introduced last year to ease pressure on foreign exchange, stabilize pump prices, and ensure steady domestic supply.
Over the weekend, Dangote Refinery resumed nationwide sales of Premium Motor Spirit (PMS) in naira after intervention by the Naira for Crude Technical Committee. In a customer message, the refinery announced: “Following the intervention of the Naira for Crude Technical Committee chairman, we are pleased to inform you of the resumption of PMS sales in naira commencing immediately.”
The initiative, launched by the Federal Government in October 2024, provides crude to local refineries in the local currency. Officials say the model could later be expanded to other refiners across the country.
Aliko Dangote, Chairman of Dangote Group, has repeatedly stressed that his refinery and NNPC are not rivals but partners in Nigeria’s energy transformation. During a recent meeting with NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, Dangote emphasized: “There is no competition between us. NNPC is part and parcel of our business, and we are also part of NNPC. This is an era of cooperation between the two organizations.”
