The Nigerian National Petroleum Company Limited (NNPC) has signed a new two-year crude oil supply agreement with the Dangote Petroleum Refinery, further strengthening the strategic partnership between the state oil company and Africa’s largest privately-owned refinery. The deal, announced on Monday, is expected to ensure a steady flow of crude to the $20 billion facility and enhance Nigeria’s domestic refining capacity.
According to NNPC, the agreement is part of broader efforts to reduce the nation’s dependence on imported refined petroleum products, guarantee energy security, and maximize the benefits of Nigeria’s vast crude reserves. Officials explained that the two-year supply framework will provide stability for operations at the 650,000 barrels-per-day refinery, which has been described as a game-changer for the country’s downstream sector.
The partnership follows an earlier crude supply arrangement signed in 2024, which paved the way for the refinery’s initial operations. With the fresh agreement, stakeholders say both parties are moving towards a sustainable model that will secure crude availability for refining while supporting the Federal Government’s agenda of achieving self-sufficiency in petroleum products.
Industry analysts have hailed the development as a major step toward addressing Nigeria’s long-standing challenges of fuel scarcity and heavy import bills. They argue that a reliable crude allocation to the Dangote Refinery will enable it to consistently meet local demand for petrol, diesel, aviation fuel, and other products, thereby reducing pressure on foreign exchange reserves.
For NNPC, the deal not only assures the refinery of uninterrupted crude supply but also offers a steady revenue stream for the company, which remains the custodian of Nigeria’s oil resources. By committing to a two-year arrangement, the state oil firm is expected to benefit from improved planning, reduced market uncertainty, and stronger collaboration with private sector stakeholders.
The Dangote Group, in its reaction, welcomed the agreement, describing it as a milestone in the quest to make Nigeria a net exporter of refined products. The company reiterated its commitment to meeting international standards in refining operations and assured that it would prioritize the Nigerian market while also exploring regional exports to West and Central Africa.
Observers believe the renewed partnership between NNPC and Dangote Refinery could mark the beginning of a new era for Nigeria’s oil and gas industry, with the potential to transform the nation into a regional refining hub and save billions of dollars annually in import costs. The deal is also expected to create ripple effects in job creation, investment opportunities, and overall economic growth.
