The Federal Government of Nigeria has sold crude oil valued at N219.38 billion to the Dangote Petroleum Refinery over a four-month period, marking a significant shift in the country’s domestic crude utilization and refining strategy.
According to figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the sales were made under a direct crude allocation arrangement designed to support the operational take-off of the 650,000 barrels-per-day refinery in Lagos.
Industry analysts say the transaction signals a major step toward reducing Nigeria’s long-standing dependence on imported petroleum products, as the Dangote Refinery ramps up production capacity.
A senior official at the Ministry of Petroleum Resources, who spoke on condition of anonymity, said the move aligns with the government’s agenda to enhance local refining capacity and retain more value within the Nigerian economy.
“This deal not only supports our refining revolution but also helps stabilize fuel supply and reduce forex pressure from imports,” the official stated.
Since beginning test operations earlier this year, the Dangote Refinery has gradually increased its intake of Nigerian crude, with expectations to reach full capacity by the end of 2025. The NUPRC noted that the sales were made in line with prevailing international prices and under a transparent framework overseen by regulatory bodies.
Experts believe the arrangement could also bolster government revenue while offering a sustainable off-take model for Nigerian crude producers.
“The success of this transaction could pave the way for similar agreements with other local refineries as they come online,” said energy economist Dr. Tony Ibeh.
The Dangote Refinery is touted as the largest single-train refinery in the world and is expected to transform Nigeria’s energy landscape by cutting fuel import bills and creating thousands of jobs.
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