The Federal Government sold crude oil valued at ₦219.38 billion to the Dangote Petroleum Refinery between January and April 2025, according to documents from the Federation Account Allocation Committee (FAAC).
The crude deliveries, totaling 1,901,850 barrels, were supplied by the Nigerian National Petroleum Company Limited (NNPCL) from the Okwuibome field, operated under Production Sharing Contracts by Sterling Oil Exploration & Energy Production Company and Nigerian Agip Exploration.
Sales were executed at prices ranging between $74.87 and $80.34 per barrel, using exchange rates of ₦1,501.22/$ to ₦1,562.91/$, as advised by the Central Bank of Nigeria. Payments were made in naira under terms guided by Afreximbank exchange references.
Monthly supply to the refinery increased steadily, from ₦17.52 billion in January to ₦111.95 billion in April. The refinery received ₦32.95 billion worth of crude in February and ₦56.97 billion in March.
In April, the Dangote Refinery temporarily suspended local sales of its petroleum products, citing misalignment between crude procurement and product revenue. The development led to a brief pause in domestic crude allocations.
Subsequently, the Federal Executive Council reaffirmed its support for the ongoing naira-for-crude policy, describing it as a long-term initiative aimed at strengthening domestic refining capacity. A follow-up meeting by the relevant sub-committee confirmed continued efforts toward full implementation of the policy.
Despite the policy support, the refinery has maintained that crude supply remains insufficient to meet operational needs, resulting in supplemental imports from international markets.
FAAC records show that the federal government also earned ₦231.47 billion from crude oil exports between January and April 2025. Export sales during the period totaled $153.03 million, with naira earnings subject to monthly exchange rate fluctuations.
A breakdown of export earnings includes:
- January: $31.13 million (₦45.99 billion)
- February: $41.23 million (₦61.50 billion)
- March: $79.07 million (₦121.44 billion)
- April: $1.59 million (₦2.53 billion)
The decline in April earnings reflected the suspension of crude sales to local refineries and a drop in international export volumes.
Gross oil and gas receipts for April stood at $6.25 billion (₦1.01 trillion), with gas export contributing $4.56 billion. Other sources included arrears from NLNG feedstock gas and additional crude and gas-related receipts.
However, the April disbursement to the Federation Account dropped significantly, with ₦120.93 billion shared, compared to ₦204.85 billion in March, reflecting a 41 percent decline.
Industry stakeholders have advised the government to ensure that crude oil pricing to domestic refineries remains cost-reflective but affordable, in order to support downstream stability and protect consumers from high fuel costs.
