The refusal of Dangote Refinery to supply petroleum products to the Nigerian market stems from the ongoing delays in naira-for-crude deal renegotiations.
The refinery intends to maintain its export operations because it acquires all its crude materials from international markets using US dollars.
Nigerian National Petroleum Company (NNPC) Ltd grants the refinery product procurement in local currency which enables it to sell to Nigerian marketers in naira.
The deal has now ended.
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On March 10, It was reported that NNPC has discontinued the naira-for-crude deal with Dangote refinery and other local refineries.
However, hours after the report, Olufemi Soneye, the chief corporate communications officer of NNPC, said the current deal, which began in October 2024, will expire at the end of March.
Soneye added that negotiation is ongoing for a new naira-for-crude deal with Dangote Petroleum Refinery.
The spokesperson said NNPC has made over 48 million barrels of crude oil available to Dangote refinery since October 2024, adding that in aggregate, the government-owned oil company has supplied over 84 million barrels of crude oil to the refinery since its commencement of operations in 2023.
The local refineries along with the federal government made agreements to trade crude oil as well as refined petroleum products using naira currency which would improve supply while saving money on imports and ultimately decreasing fuel prices.
