Nigeria is set to witness a surge in Premium Motor Spirit (PMS) imports following the Nigerian National Petroleum Company (NNPC) Limited’s decision to end the Naira-for-Crude initiative—a policy that allowed local refiners to purchase crude in the local currency.
The move could significantly impact local fuel production, particularly at the Dangote Refinery.
According to a document from the Nigerian Ports Authority, reported by The Punch, seven vessels carrying 115,000 metric tonnes (154.22 million liters) of imported petrol are expected to arrive at three major Nigerian seaports between March 17 and March 23, 2025.
The suspension of the Naira-for-Crude deal has sparked criticism, with some industry players accusing policymakers of attempting to frustrate Dangote Refinery’s operations and revert to full dependence on imported refined petroleum.
In response to supply challenges, Dangote Refinery has increased crude purchases from foreign markets, acquiring over three million barrels from the United States since the beginning of March.
The refinery has also sourced crude from Equatorial Guinea and is reportedly considering selling its petrol in U.S. dollars instead of naira.
Eche Idoko, National Publicity Secretary of the Crude Oil Refinery-Owners Association of Nigeria, criticized the suspension, arguing that it undermines Nigeria’s energy security.
He claimed that some stakeholders opposed Dangote’s fuel price cuts and used monopoly negotiations as a pretext to reinstate large-scale fuel importation.
Reports from the Organization of the Petroleum Exporting Countries (OPEC) revealed that Nigeria’s petrol imports rose in October 2024, despite local refining capacity.
However, by January 2025, imports had dropped to an eight-year low, largely due to Dangote Refinery’s output.
The refinery’s price reductions have disrupted market dynamics, reportedly affecting oil importers’ profits and fueling tensions in the sector.
Dangote Speaks Out Against the “Oil Mafia”
In an interview with Forbes, Aliko Dangote described the situation as a battle against the “oil mafia,” which he called more powerful than drug cartels due to their widespread influence.
“The oil mafia is more deadly than the one in drugs because so many people are involved,” Dangote told Forbes.
“You might be winning and dining with them, but these are the guys who are the masters of moving things around.”
NNPC’s Forward-Sale of Crude
The NNPC’s decision to halt the Naira-for-Crude deal reportedly stems from the forward sale of its crude output, meaning it had already committed future production to pre-arranged contracts, debt settlements, or immediate cash flow needs.
The move has raised concerns over Nigeria’s fuel supply stability, especially as the country’s reliance on imports increases once again.
