In a shocking development, Dangote Refinery has reportedly halted petroleum product loading for the Nigerian market as negotiations over the controversial naira-for-crude deal with the Nigerian National Petroleum Company (NNPC) stall. The refinery will now prioritize exports, sourcing crude in dollars from international markets while leaving Nigerian consumers uncertain about future fuel supplies.
The NNPC abruptly discontinued the naira-for-crude deal on March 10, cutting off the agreement that allowed local refineries to buy crude in naira—a move that was originally designed to stabilize fuel supply and reduce pump prices. While the NNPC claims discussions are ongoing for a new deal, insiders warn that the uncertainty could trigger fuel scarcity and price hikes across the country .
Despite supplying over 84 million barrels of crude to Dangote Refinery since its launch in 2023, the federal government now seems unwilling to continue the arrangement, raising questions about its commitment to supporting local refining. With Dangote Refinery shifting focus to exports, Nigerians may soon face another round of fuel shortages and economic strain was this policy shift a strategic miscalculation, or is there more at play behind the scenes?
