NNPC Fails to Meet Crude Supply Target Under Naira-for-Crude Deal – Dangote Refinery
The Dangote Refinery has revealed that the Nigerian National Petroleum Company Limited (NNPCL) has failed to meet its crude oil supply commitments under the Naira-for-crude agreement with the refinery.
Devakumar Edwin, Vice President of Dangote Industries Limited, disclosed this in an interview with Reuters, stating that the crude supplied by NNPCL has fallen far short of the agreed target.
“We need 650,000 barrels per day. NNPCL agreed to give a minimum of 385,000 bpd, but they are not even delivering that,” Edwin said, describing the amount received as “peanuts” compared to what is required to scale up production.
The Naira-for-crude deal, launched in October 2024, was designed to facilitate crude supply to the $20 billion Dangote Refinery, Africa’s largest, while easing Nigeria’s reliance on imported refined products. However, the shortfall in supply has reportedly forced the refinery to import crude from the United States to meet its production demands.
NNPCL’s inability to meet the agreed minimum of 385,000 barrels per day raises questions about the sustainability of the government’s plan to utilize the refinery as a key component of its energy security strategy.
The Dangote Refinery, which has a full refining capacity of 650,000 barrels per day, is seen as a potential game-changer for Nigeria’s economy, reducing dependence on fuel imports and boosting local production.
