KEY POINTS

• Dangote Refinery reduced petrol prices to ₦865 per litre, citing improved supply under the Naira-for-Crude policy, which mandates domestic crude sales in local currency.
• The NNPCL clarified that its agreement with Dangote remains active despite expired terms, with negotiations ongoing for a renewed contract to sustain local refining.
• The policy aims to enhance energy security and reduce forex dependency, with over 84 million barrels of crude already supplied to Dangote since 2023.

In a significant development for Nigeria’s energy sector, Dangote Petroleum Refinery announced a reduction in the price of petrol to ₦865 per litre on Thursday, marking a ₦15 drop from the previous day’s rate of ₦880.

The price adjustment comes as the Federal Government moves to fully implement the Naira-for-Crude initiative, a policy designed to bolster local refining capacity and reduce reliance on imported fuel.

The Ministry of Finance confirmed the policy’s advancement in a social media update, stating that the first phase of the agreement between the Federal Government, the Nigerian National Petroleum Company Limited, NNPCL, and Dangote Refinery concluded on March 31, 2025.

“This is not a temporary measure but a long-term strategy to enhance energy security and stabilize the domestic market,” the ministry emphasized. Under the arrangement, over 84 million barrels of crude oil have been supplied to Dangote Refinery since operations began in 2023, with 48 million barrels allocated since October 2024 alone.

Addressing misinformation and strengthening local refining

The price reduction follows recent denials by the NNPCL regarding rumors that the Naira-for-Crude agreement had been terminated. Olufemi Soneye, the company’s Chief Corporate Communications Officer, clarified that the initial six-month contract had expired as scheduled, with discussions underway for a new agreement. “NNPC Ltd. remains committed to supplying crude for local refining under mutually beneficial terms,” Soneye stated.

Analysts suggest the price cut reflects improved refining efficiency and the government’s efforts to curb foreign exchange pressures. “When crude is sold to local refiners in naira, it eliminates the need for dollar conversions, reducing costs across the supply chain,” explained energy economist Ifeoma Okoye.

According to SaharaReporters, the move aligns with broader objectives to make petrol more affordable for Nigerians, though some industry watchers caution that global oil price fluctuations could impact future pricing.

Meanwhile, the Technical Sub-Committee overseeing the initiative met on Tuesday to review progress, reaffirming the program’s role in promoting sustainable refining. Stakeholders noted that the policy has already reduced fuel importation by 30% since January, with further declines expected as other local refiners like Waltersmith and BUA Group ramp up production.