In a significant development that underscores the growing role of domestic refining in Nigeria’s oil economy, internal documents from the Nigerian National Petroleum Company Limited (NNPCL) reveal that the Dangote Refinery purchased 32 percent of the corporation’s crude oil sales in the first quarter of 2025.
Out of a total N336.37 billion realized from crude oil sales between January and March, Dangote Refinery accounted for N107.44 billion. The purchases were made under the naira-for-crude exchange arrangement — a strategic policy initiative aimed at reducing pressure on foreign exchange reserves and stabilizing local fuel prices.
According to the records, seven cargoes amounting to 915,821 barrels were delivered to the refinery at exchange rates fluctuating between N1,501.22 and N1,562.91 to the dollar. The policy has not only anchored internal crude supply but is also reshaping Nigeria’s fuel pricing template by insulating it from volatile forex markets.
Beyond domestic sales, the NNPCL also sold approximately 1.95 million barrels to foreign refiners, earning $151.44 million (N228.93 billion) through international transactions involving premium blends like Egina, Erha, and Forcados. This dual-track approach, combining local refining partnerships with foreign exchange generation, marks a deliberate strategy by the national oil company to strike a balance between self-sufficiency and export revenue.
With the Dangote Refinery now operational and absorbing a larger share of locally produced crude, industry watchers believe this signals a turning point in Nigeria’s downstream sector. It remains to be seen how this trend will influence fuel imports, forex rates, and national revenue in the coming quarters.