The Nigerian National Petroleum Company Limited (NNPC) has revealed that the Dangote Petroleum Refinery accounted for more than 32 per cent of crude oil sales in July 2025, underscoring the growing role of the $20bn Lagos-based refinery in Nigeria’s oil and gas sector.
According to internal records presented at the Federation Account Allocation Committee (FAAC) meeting in August, total crude oil sales for July stood at 340,000 barrels, generating about $22.51 million or N34.64 billion at prevailing exchange rates.
The Dangote refinery purchased 100,000 barrels of Okwuibome crude valued at N11.20 billion, representing 32.33 per cent of the revenue declared for the month.
The document, obtained by our correspondent, showed that:
NNPC Trading lifted 220,000 barrels of Antan blend crude on the vessel Ottoman Courtesy at a unit price of $63.73 per barrel.
This fetched $14.02m, equivalent to N21.49bn using the exchange rate of N1,532.55/$1.
An additional 20,000 barrels from the same Antan field yielded $1.27m, or N1.95bn.
Dangote Refinery lifted 100,000 barrels of Okwuibome crude produced by SEEPCO on the vessel Sonangol Kalandula at $72.09 per barrel, valued at $7.21m, which converted to N11.20bn at an exchange rate of N1,553.27/$1.
This transaction represents the first documented crude sale by NNPC to Dangote Refinery since the renewal of the naira-for-crude agreement in April 2025.
The Federal Government introduced the naira-for-crude policy in July 2024 to stabilize the naira, guarantee local crude supply, and reduce reliance on U.S. dollars.
Under this arrangement, NNPC sells crude oil to local refineries, including Dangote’s 650,000 barrels per day facility, in naira at exchange rates advised by the African Export-Import Bank (Afrexim Bank).
The initiative was designed to ease pressure on foreign reserves and cut Nigeria’s massive import bill for refined petroleum products.
Officials said it would also help stabilise pump prices and improve energy security by ensuring that domestic refineries have priority access to crude feedstock.
However, in March 2025, Dangote Refinery briefly suspended product sales in naira, citing the risk of a mismatch between sales proceeds and crude purchase obligations denominated in U.S. dollars.
The Federal Executive Council later reaffirmed that the policy was not temporary but a key strategy for sustaining local refining capacity.
The July deal adds to the N107.44bn worth of crude oil already supplied to the refinery in the first quarter of 2025.
Altogether, in the past seven months, Dangote Refinery has received crude oil worth N118.64bn under the arrangement.
Unit prices for crude sold to Dangote during the period ranged from $74.87 to $80.34 per barrel, with exchange rates fluctuating between N1,501.22/$ and N1,562.91/$.
Analysts note that the refinery’s participation in the domestic crude market could be a turning point for Nigeria’s energy sector.
The facility, which is the largest single-train refinery in the world, is expected to process a significant share of Nigeria’s crude production and drastically reduce fuel importation costs.
Oil industry experts also believe that the refinery’s crude purchases in naira will reduce volatility in Nigeria’s foreign exchange market while strengthening the naira by lowering dollar demand.
However, challenges remain. Industry stakeholders continue to highlight issues around pricing transparency, competition, and the sustainability of the naira-for-crude arrangement, particularly if oil prices rise sharply or if foreign exchange scarcity worsens.
The NNPC has assured that the July crude sale to Dangote is part of an ongoing effort to deepen Nigeria’s local refining capacity while supporting government policies on energy security and currency stability.
A senior NNPC official, who spoke off record, confirmed that more such transactions are expected in the coming months as part of the full rollout of the policy.
If sustained, experts say Nigeria could save billions of dollars annually on petroleum imports, strengthen the local currency, and enhance self-sufficiency in energy production.