By Toyin Akande
Copyright bizwatchnigeria
The Nigerian National Petroleum Company Limited (NNPC Ltd.) has entered into a new two-year crude supply agreement with the Dangote Petroleum Refinery. According to NNPC spokesperson Andy Odeh, the state-owned oil company will deliver five cargoes each in September and October under the terms of the deal, which was finalised last month. Details on post-October supply volumes were not disclosed.
Since October 2024, the 650,000-barrel-per-day refinery, owned by Africa’s richest man Aliko Dangote, has received a cumulative 82 million barrels of crude from NNPC, with 60% of the supplies settled in naira.
Last year, Nigeria launched a Naira-for-Crude initiative, mandating that 445,000 barrels per day of crude be supplied to Dangote Refinery in local currency. The policy was designed to ease pressure on the naira and stabilise fuel prices, with potential extension to other domestic refiners.
Over the weekend, Dangote Refinery confirmed the resumption of Premium Motor Spirit (PMS) sales in naira nationwide, following intervention by the Naira-for-Crude Technical Committee.
Aliko Dangote, during a courtesy visit to NNPC’s Group Chief Executive Officer, Bashir Bayo Ojulari, earlier this year, stressed that both companies are partners, not rivals, in Nigeria’s refining and energy space.
“There is no competition between us. NNPC is part of our business, and we are also part of NNPC. This is an era of cooperation between the two organisations,” Dangote said.
