NNPC Breaks Silence on Dangote Crude Supply Dispute as Naira-for-Crude Deal Faces Fresh Scrutiny

NNPC Breaks Silence on Dangote Crude Supply Dispute as Naira-for-Crude Deal Faces Fresh Scrutiny

Description: NNPC says it has supplied all available crude oil allocated under the Federal Government's naira-for-crude initiative to the Dangote Refinery, while Dangote insists deliveries remain far below expectations. Here's everything you need to know.

NNPC Insists It Supplied All Available Crude to Dangote Refinery

The Nigerian National Petroleum Company Limited (NNPC) has firmly denied claims that it withheld crude oil meant for the Dangote Petroleum Refinery, insisting it has supplied 100% of all available crude cargoes allocated under the Federal Government's naira-for-crude initiative.

The statement comes amid growing controversy over Dangote Refinery's decision to suspend naira-denominated fuel sales and begin pricing petroleum products in U.S. dollars, raising fresh concerns about fuel prices, foreign exchange pressure, and Nigeria's energy security.

Dangote Says Monthly Crude Supply Is Far Below Expectations

Despite NNPC's assurance, a senior official of the Dangote Group disclosed that the refinery currently receives only about 4 million barrels of crude oil per month, far below the approximately 13 million barrels expected under President Bola Tinubu's 2024 directive.

According to the refinery, the inadequate crude supply has made it impossible to sustain fuel sales in naira, forcing the company to adopt dollar-based pricing and increase exports to earn foreign exchange.

NNPC: No Crude Was Withheld

Responding to the claims, NNPC spokesperson Andy Odeh stated that the company has fully honored its obligations under the naira-for-crude arrangement.

According to him:

NNPC allocated 100% of all available naira-denominated crude cargoes to Dangote Refinery in 2026.

There has been no deliberate withholding of crude supplies.

Actual deliveries depend on crude availability, nomination schedules, and refinery operational planning.

NNPC and Dangote remain committed partners working together to address any operational gaps.

Odeh also emphasized that NNPC, which holds a 7.25% equity stake in the refinery, has every interest in ensuring Dangote operates at maximum capacity.

Why Dangote Switched to Dollar Sales

Dangote Refinery recently announced a new dollar-denominated pricing template for refined petroleum products.

The refinery now sells:

Petrol: $0.779 per litre

Diesel: $1.087 per litre

Aviation Fuel: $0.942 per litre

The move has drawn mixed reactions, with marketers warning that it could increase fuel prices, while regulators insist it complies with the Petroleum Industry Act.

Fuel Scarcity and Higher Prices Hit Abuja

As the dispute continues, motorists in Abuja are already feeling the impact.

Several filling stations remained closed, while those selling petrol increased pump prices to between ₦1,250 and ₦1,280 per litre.

Meanwhile, marketers are scrambling for supplies as loading activities at Dangote Refinery remain disrupted, creating uncertainty across the downstream petroleum sector.

Energy Expert Explains What It Means

Petroleum economist Professor Wumi Iledare described Dangote's decision as a commercial response to global market realities.

According to him:

Crude oil is traded globally in U.S. dollars.

Dollar pricing protects refiners from exchange-rate volatility.

Petrol prices will continue to depend largely on international crude prices and the strength of the naira.

Domestic refining improves fuel availability but cannot completely shield Nigeria from global oil market fluctuations.

He stressed that Nigeria's long-term solution lies in building a transparent, competitive and efficient downstream petroleum market.

What This Means for Nigerians

The disagreement between NNPC and Dangote has significant implications for millions of Nigerians.

If crude supply challenges persist, the country could experience:

Higher petrol prices.

Increased fuel scarcity.

Greater pressure on the naira.

More expensive transportation and living costs.

Increased dependence on foreign exchange for petroleum transactions.

The outcome of ongoing discussions between NNPC and Dangote could determine the future of the naira-for-crude initiative and Nigeria's fuel pricing system.

Conclusion

While NNPC insists it has fulfilled all crude supply obligations, Dangote Refinery maintains that the volumes received are insufficient to sustain naira-based fuel sales.

As both sides continue negotiations, Nigerians are hoping for a lasting solution that guarantees stable fuel supplies, affordable prices, and stronger energy security.

What Do You Think?

Do you believe NNPC has supplied enough crude to Dangote Refinery, or is the refinery justified in switching to dollar-denominated fuel sales?

Share your opinion in the comments.

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