LAGOS, March 11 – Nigeria’s state oil company, NNPC Ltd, has initiated discussions with Dangote Oil Refinery to extend its contract for supplying crude oil in naira. This contract, originally set for six months, will conclude later this month and was implemented in October due to local refineries, including the Dangote facility, facing challenges in securing crude supplies.
The goal of this initiative was to resolve those supply issues by enabling refineries to purchase crude oil in naira through NNPC Ltd. To date, NNPC Ltd has supplied 48 million barrels of oil to the Dangote Oil Refinery under this arrangement.
Although the initial plan included supplying seven smaller refineries, only the Dangote refinery has benefited from the agreement, and it did not receive the full volume that was initially promised.
NNPC Ltd has stated that “discussions are ongoing” regarding a new contract. However, details about the potential contract, including volume, pricing, and duration, have not yet been disclosed.
