The Nigerian National Petroleum Company Limited (NNPC Ltd.) has denied allegations that it failed to supply enough crude oil to the Dangote Petroleum Refinery under the Federal Government’s naira-for-crude initiative.
NNPC spokesperson Andy Odeh said the company had fulfilled its obligations, explaining that all available naira-denominated crude cargoes allocated for the refinery in 2026 were supplied.
He stated that while NNPC, which holds a 7.25 per cent stake in the refinery, remains committed to ensuring the facility operates at full capacity, actual crude deliveries depend on factors such as availability, scheduling, and refinery operations.
“NNPC Limited has met its 2026 supply obligations to the refinery. Our engagement with Dangote Petroleum Refinery remains constructive, and any gaps are being addressed together,” Odeh said.
However, a senior Dangote Group official disputed the claim, saying the refinery was receiving only about four million barrels of crude monthly under the arrangement instead of the expected 13 million barrels projected after President Bola Tinubu’s 2024 directive.
The official said the limited crude supply forced the refinery to move away from naira-based fuel sales and adopt dollar pricing for petroleum products. The refinery also plans to increase exports of refined products to generate foreign exchange.
The development comes after Dangote Refinery introduced dollar-denominated prices for petrol, diesel and aviation fuel, a move that attracted criticism from some industry stakeholders over possible effects on fuel prices.
Petroleum economist Professor Wumi Iledare said the decision should be viewed within the realities of the global oil market, where crude oil is traded in dollars. He explained that dollar pricing could help the refinery manage exchange rate risks but may also expose marketers and consumers to currency fluctuations.
According to him, domestic refining has improved Nigeria’s energy security by reducing dependence on imported petroleum products, but it cannot completely shield the country from global oil price movements.
Meanwhile, petrol supply challenges have intensified in Abuja, with some filling stations closing while others sold petrol at prices between N1,250 and N1,280 per litre.
The situation has also increased pressure on petroleum marketers in Lagos, where truck activity at private depots has risen as dealers seek alternative supplies.
Industry observers say the ongoing disagreement highlights the need for stronger coordination between crude suppliers, refiners, and government agencies to ensure stable fuel supply and pricing in Nigeria.
