The Nigerian National Petroleum Company Limited (NNPC) has signed a two-year crude oil supply agreement with the Dangote Refinery, securing feedstock for the 650,000-barrel-per-day (bpd) facility in Lekki, Lagos.

The deal, finalized in August, guarantees a steady flow of crude to the multi-billion-dollar refinery until 2027.

According to NNPC, about 82 million barrels have been allocated since October 2024, with 60 percent sold in naira under the Federal Government’s crude-for-naira initiative.

NNPC’s Chief Corporate Communications Officer, Andy Odeh, confirmed that crude cargoes had already been delivered for August, while loading for September was ongoing.

He added that the volumes are periodically reconciled with the refinery and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

The Federal Government’s Steering Committee has assured that the crude-for-naira scheme remains intact, stressing that the initiative will not disrupt fuel supply across the country.

Oil marketers have welcomed the development, noting that the agreement would strengthen energy security and reduce reliance on imported crude.

They also called on the government to extend the domestic crude supply arrangement to modular refineries in order to boost local refining capacity.