NNPC Failed to Meet Crude Supply Target under Naira-for-Crude Deal – Dangote Refinery

The Dangote Refinery has revealed that the Nigerian government did not fulfill its crude oil supply commitments under the Naira-for-crude deal. In an interview with Reuters, Devakumar Edwin, Vice President of Dangote Industries Limited, highlighted that the Nigerian National Petroleum Company Limited (NNPCL) fell short of its supply targets.

According to Edwin, the quantity of crude oil received from NNPCL is “peanuts” in comparison to what is needed to ramp up the refinery’s production capacity. Since the programme’s launch in October 2024, NNPCL has failed to meet its pledged supply of at least 385,000 barrels per day (bpd), a crucial target for the refinery’s operations.

“We need 650,000 barrels per day. NNPCL agreed to supply a minimum of 385,000 bpd, but they haven’t even met that,” Edwin stated.

The Naira-for-crude agreement was struck between the Nigerian government and the Dangote Refinery, with the government announcing its implementation in October. However, reports indicate that Dangote Refinery has also resumed sourcing crude oil from the United States to boost production at its $20 billion refinery.