Dangote To Stop Fuel Supply To Nigerian Market

Dangote Refinery will supposedly cease distributing petroleum products to the Nigerian market because the renegotiation of the naira-for-crude agreement has reached an impasse.

Reports indicate that the refinery will persist in loading products for export since it presently obtains all its crude supply from the global market in dollars.

The refinery provides products to Nigerian marketers in naira due to its arrangement to purchase crude in the local currency through a pact with the Nigerian National Petroleum Company (NNPC) Ltd, though that agreement has now concluded.

On March 10, the NNPC terminated the naira-for-crude arrangement with Dangote Refinery and other domestic refineries, but shortly after the announced suspension, Olufemi Soneye, the chief corporate communications officer of NNPC, clarified that the existing deal, which started in October 2024, will conclude at the end of March.

Soneye further noted that discussions are underway for a fresh naira-for-crude arrangement with Dangote Petroleum Refinery.

Soneye stated that NNPC has supplied more than 48 million barrels of crude oil to Dangote Refinery since October 2024, adding that, in total, the state-owned oil firm has delivered over 84 million barrels of crude oil to the refinery since it began operations in 2023.

Local refineries and the federal government reached a consensus to trade crude oil and refined petroleum products in naira to enhance supply, conserve millions of dollars spent on importing petroleum products, and ultimately lower pump prices.

A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.

Nnamdi Okoli