By SpringNewsNG | June 26, 2025

The Federal Government of Nigeria sold crude oil worth ₦219.38 billion to the Dangote Petroleum Refinery between January and April 2025, even as rising forex volatility, pricing disputes, and policy uncertainty disrupted domestic crude supply to local refiners.

According to documents from the Nigerian National Petroleum Company Limited (NNPCL), presented at the Federation Account Allocation Committee (FAAC) meetings and obtained by The PUNCH, the crude allocation to Dangote Refinery accounted for a significant portion of domestic oil sales during the period.

FG Earns $1.59m From Crude Exports in April Amid Dangote Suspension

In April 2025 alone, while sales to Dangote were temporarily halted, the Federal Government earned $1.59 million from crude exports, converting to ₦2.53 billion at an average exchange rate of ₦1,595.69/$, as provided by the Central Bank of Nigeria (CBN).

The suspension came after a disagreement over the naira-for-crude arrangement, which led Dangote Refinery to temporarily stop selling petroleum products in naira. The company cited a mismatch between naira sales proceeds and its dollar-denominated crude oil purchase obligations.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received,” Dangote Refinery said in a statement. “We must temporarily adjust our sales currency to align with our crude procurement currency.”

The disagreement pushed petrol loading costs at private depots in Lagos above ₦900 per litre, sparking concerns about downstream affordability.

Dangote Refinery Received Nine Cargoes, Over 1.9 Million Barrels

NNPCL documents reveal that nine cargoes—totaling 1,901,850 barrels—were delivered to the 650,000 barrels-per-day Lagos-based refinery, with crude sourced from the Okwuibome field (Sterling Oil) and Nigerian Agip Exploration.

The sales were priced between $74.87 and $80.34 per barrel, with exchange rates ranging from ₦1,501.22/$ to ₦1,562.91/$. The Afrexim Bank-advised rate was used for conversion, with payments made in naira.

Monthly Breakdown Shows Crude Supply Surge

An analysis of crude deliveries to Dangote Refinery shows an exponential increase within four months:

• January 2025: ₦17.52 billion
• February 2025: ₦32.95 billion (up 88%)
• March 2025: ₦56.97 billion (up 73%)
• April 2025: ₦111.95 billion (up 96.4%)

This brought total crude sales to the refinery to ₦219.38 billion over the four-month period.

Crude Exports Yielded ₦231.47bn in the Same Period

Meanwhile, Nigeria’s crude exports generated ₦231.47 billion in revenue from $153.03 million in sales to international buyers between January and April 2025. The near-equal split highlights the government’s dual focus on boosting domestic refining while sustaining forex earnings from crude exports.

FAAC Report Shows Sharp Decline in April Revenues

The May 2025 FAAC report revealed that while March saw oil export earnings of ₦771.46 billion, receipts plummeted by 97.97% to just ₦15.63 billion in April. Domestic crude revenue also dropped from ₦136.36 billion to zero, with no reported inflows for April.

Total oil and gas receipts for April were $6.25 billion, equivalent to ₦1.01 trillion, with $4.56 billion coming from gas exports and another $6.13 million from NLNG feedstock gas arrears.

Government Reaffirms Naira-for-Crude Policy Despite Setbacks

Following the suspension, the Federal Executive Council (FEC) reaffirmed its commitment to the naira-for-crude initiative, describing it as a “key policy directive” for supporting local refining.

“This is not a temporary measure. The government remains committed to full implementation,” the FEC stated after a meeting of the technical sub-committee overseeing the policy.

Despite this, Dangote Refinery continues to report inadequate crude allocation, leading it to import crude from the U.S. to sustain operations.

Marketers Warn of Fuel Price Spike, Call for Intervention

Fuel marketers have urged the Federal Government to intervene and ensure affordability of refined petroleum products amid rising prices. IPMAN Vice President, Hammed Fashola, suggested pegging domestic crude prices for local refineries to help stabilize pump prices.

“The government must work closely with Alhaji Aliko Dangote. This is the time we need the naira-for-crude deal most,” Fashola stressed.

He and other stakeholders argue that discounted crude pricing for local refiners could ease inflation and improve accessibility to petrol and diesel for average Nigerians.