NIGERIA – The Nigerian National Petroleum Company (NNPC) Limited has officially discontinued its naira-for-crude agreement with Dangote Petroleum Refinery and other local refineries, a move that could lead to a surge in petrol prices.
With the suspension of this initiative, domestic refineries will now depend on international crude suppliers, incurring significant costs in dollars. The NNPC reportedly cited prior commitments, stating that all its crude supplies have been forward-sold until 2030, despite an increase in production levels.
The naira-based crude exchange was introduced on October 1, 2024, to boost local supply, reduce import costs, and lower pump prices. However, industry sources confirm that the scheme has now been shelved, prompting concerns about the volatility of the foreign exchange market and potential fuel price instability.
Market analysts warn that the abrupt decision may disrupt recent economic gains. While Dangote Refinery has yet to issue an official response, an insider stated that the company is assessing its next steps.
By Damilola Adeleke| March 12, 2025
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
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