NNPC, Dangote Clash Over 4 Million-Barrel Crude Supply as Refinery Switches Fuel Sales to Dollars
Updated
Updated · Punch Newspapers · Jul 21
NNPC, Dangote Clash Over 4 Million-Barrel Crude Supply as Refinery Switches Fuel Sales to Dollars
1 articles · Updated · Punch Newspapers · Jul 21
Summary
Dangote says it is receiving just 4 million barrels of crude a month under the naira-for-crude deal, far below the roughly 13 million barrels envisaged after President Bola Tinubu’s 2024 directive.
NNPC rejects any blame, saying it allocated 100% of all available naira-denominated crude cargoes to Dangote in 2026 and that actual deliveries depend on crude availability, nomination timing and the refinery’s scheduling.
The supply dispute has pushed Dangote to price petrol at $0.779 a litre, diesel at $1.087 and aviation fuel at $0.942, while saying it will export more products for foreign exchange and supply naira-paid output to NNPC.
Market strains are already visible: petrol sold at N1,250-N1,280 a litre in Abuja on Monday, some stations were shut, and marketers crowded Lagos depots after a fifth straight day of suspended loading at the refinery.
Energy economist Wumi Iledare said dollar pricing is a commercial hedge against exchange-rate risk, making local fuel prices track crude and the naira more closely even as domestic refining improves supply security more than affordability.