The Nigerian National Petroleum Company Limited (NNPC Ltd.) has stated that it supplied all available crude oil cargoes allocated under the Federal Government’s naira-for-crude initiative to the Dangote Petroleum Refinery, insisting that it has not withheld any cargo under the arrangement.
The clarification comes after a senior Dangote Group official told The PUNCH that the refinery was receiving only four million barrels of crude oil per month, far below the 13 million barrels expected following President Bola Tinubu’s 2024 directive.
The refinery had earlier blamed the shortfall in crude supply for its decision to stop selling fuel in naira and switch to dollar-denominated transactions, while also announcing plans to increase exports of refined petroleum products to earn foreign exchange.
Responding on Monday, NNPC spokesman Andy Odeh said the company had fully met its obligations under the policy. He noted that NNPC, which holds a 7.25 per cent equity stake in the Dangote refinery, has allocated 100 per cent of all available naira-denominated crude cargoes to the refinery in 2026.
Odeh explained that the volume of crude delivered depends on factors such as crude availability, nomination schedules and the refinery’s operational plans, adding that NNPC and Dangote remain in discussions to resolve any outstanding issues.
However, the Dangote Group maintained that the crude supplied remains insufficient to sustain naira-based fuel sales. According to a senior company official, the refinery has continued to receive only four million barrels monthly, despite increased national crude production.
The official said the refinery would focus more on exports while continuing to supply the Nigerian market with refined products equivalent to any crude received under the naira-for-crude arrangement through NNPC.
Last week, the refinery introduced a dollar-based pricing template, fixing the ex-depot price of petrol at $0.779 per litre, diesel at $1.087 per litre, and aviation fuel at $0.942 per litre. The move has drawn criticism from petroleum marketers, although the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it complies with the Petroleum Industry Act, which allows refiners to recover production costs.
Meanwhile, petrol supply tightened further in the Federal Capital Territory (FCT) on Monday, with several filling stations operated by NNPC Ltd. and MRS along the Airport Road closed.
At stations that were selling fuel, petrol prices ranged between N1,250 and N1,280 per litre. Bovas sold the product at N1,250 per litre, while Azman and Salbas dispensed petrol at N1,280 per litre, raising concerns among motorists over worsening fuel availability and rising costs.
In Lagos, truck activity increased around major private petroleum depots as marketers sought alternative supplies following the fifth consecutive day of suspended loading at the Dangote refinery amid expectations of higher wholesale prices.
Commenting on the refinery’s decision to price fuel in dollars, Professor Emeritus of Petroleum Economics and Principal Facilitator at the FUPRE Energy Business School, Wumi Iledare, described the move as a commercial response to the realities of the global oil market, where crude oil is traded in US dollars.
Iledare said dollar pricing helps reduce exchange rate risks for refiners but does not automatically mean higher fuel prices. He explained that domestic pump prices will increasingly depend on international crude oil prices and the naira-dollar exchange rate.
He also noted that while the Dangote refinery has improved Nigeria’s energy security by reducing dependence on imported petrol, domestic refining alone cannot guarantee cheaper fuel, as prices will continue to be influenced by exchange rates, global crude prices, logistics costs and competition within the downstream sector.
