Dangote Refinery has halted fuel supply to the Nigerian market following the termination of its naira-for-crude deal with the Nigerian National Petroleum Company (NNPC).
The agreement, which allowed the refinery to purchase crude in naira and sell refined fuel locally, officially ended, forcing Dangote to buy crude in dollars from the international market.
As a result, the refinery is now prioritizing fuel exports, raising concerns about potential fuel shortages and price increases in Nigeria. Industry experts warn that the shift could lead to higher pump prices if local supply declines.
NNPC officials confirmed that negotiations for a new agreement are ongoing, with over 84 million barrels of crude supplied to Dangote Refinery since its launch.
The naira-for-crude initiative was initially introduced to stabilize fuel supply and reduce reliance on expensive dollar-based imports. However, its collapse could put additional pressure on fuel costs and availability in the domestic market.
