There is growing anxiety in Nigeria’s downstream oil sector following indications that Dangote Refinery may suspend the supply of petroleum products for the local market.
Industry sources revealed on Wednesday that the refinery, which currently procures crude from international markets in dollars, is facing challenges in renegotiating its naira-for-crude deal with the Nigerian National Petroleum Company Limited (NNPCL).
While negotiations remain stalled, sources confirmed that Dangote Refinery will continue exporting petroleum products, raising concerns about potential fuel supply disruptions in Nigeria.
However, when contacted for clarification, Dangote Group’s spokesperson, Anthony Chiejina, denied knowledge of any plan to halt domestic fuel distribution. “I am not aware,” he said.
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The uncertainty comes amid ongoing discussions between Dangote Refinery and NNPCL regarding a revised naira-for-crude arrangement. The initial agreement, introduced in October 2024, allowed the refinery to purchase crude in naira, ensuring local supply at more competitive rates.
The deal contributed to a significant drop in the price of Premium Motor Spirit (PMS), with petrol prices falling to as low as ₦860 per litre due to a price war between Dangote Refinery and NNPCL.
With the renegotiation process making little progress, industry stakeholders fear that a halt in local supply could lead to price instability and renewed fuel scarcity. All eyes are now on both parties to reach a resolution that ensures continued fuel availability in the Nigerian market.