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BREAKING: Dangote To End Fuel Supply To Nigeria As Naira-For-Crude Deal Expires

Published

1 month ago

Mar 19, 2025.

Dangote To End Fuel Supply As Naira-For-Crude Deal Expires

Dangote To End Fuel Supply As Naira-For-Crude Deal Expires
NNPC is negotiating a new deal, but no agreement has been reached.
Experts warn this could cause fuel scarcity and higher petrol prices.

The Dangote Refinery has announced plans to suspend the loading of petroleum products for the Nigerian market as its naira-for-crude deal with the Nigerian National Petroleum Company (NNPC) Limited expires this month. The refinery, which previously purchased crude in naira under the agreement, now faces uncertainty as negotiations for a contract renewal stall.

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EKO HOT BLOG reports that this development raises fears of a potential fuel crisis, with analysts warning that Dangote’s reluctance to supply the domestic market could exacerbate petrol scarcity. The refinery, which has a production capacity of 650,000 barrels per day, plays a crucial role in Nigeria’s energy sector, and disruptions in its operations could force a heavier reliance on imported refined products.

NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, confirmed that discussions are ongoing to renegotiate a new deal, but no significant progress has been made. The situation has sparked concerns that if local refineries are compelled to source crude in dollars, production costs may soar, potentially leading to an increase in fuel prices and added pressure on the naira.

Dangote To End Fuel Supply As Naira-For-Crude Deal Expires

Industry experts have highlighted Nigeria’s broader oil sector challenges, including foreign exchange volatility and regulatory uncertainties, which continue to impact investment and operational stability. As the impasse continues, all eyes remain on the federal government’s next move to prevent a looming fuel crisis.