The Federal Government and Dangote Refinery are set for talks on renewing the naira for crude policy after the initial six-month deal expired on March 31. Insiders say the policy, which allowed the refinery to buy crude in naira, may continue due to its economic benefits.
Refinery turns to global suppliers
A new report by S&P Global shows that Dangote Refinery processed around 400,000 barrels of crude per day in 2025, with 35% sourced from imports. This means the plant brought in about 12.6 million barrels of crude in three months. The refinery recently secured crude from Brazil and Equatorial Guinea due to unstable domestic supply.
NNPC struggles to meet supply commitments
NNPC had agreed to supply 385,000 barrels per day to Dangote but fell short, delivering about 280,000 bpd by March 10. The national oil company, which initially owned 20% of the refinery, reduced its stake to 7.2% last year. Seven crude cargoes have been allocated for April, but payment terms remain undecided.
Dangote weighs options
A Dangote executive expressed uncertainty over the naira-for-crude renewal, citing forex risks. Buying and selling in naira exposes the company to price fluctuations, making the deal less commercially attractive. The refinery is now exploring more global supply options.
Experts warn of economic impact
Analysts argue that discontinuing the policy could push up fuel prices and worsen inflation. The Human Rights Writers Association has urged President Bola Tinubu to ensure the deal continues, warning that millions of Nigerians could face economic hardship if it ends.
