Nigeria is currently in discussions with the Dangote Refinery to extend an existing contract that allows the sale of crude oil in local currency to the facility, which is the largest refinery in Africa.In a statement released late Monday, the Nigerian National Petroleum Company Ltd. (NNPC) confirmed that negotiations are ongoing to establish a new agreement. “Discussions are currently ongoing towards emplacing a new contract,” the statement read.
The original contract, which was first signed in October, is set to expire at the end of March, prompting the need for an extension.The agreement was initially introduced to help alleviate pressure on the Nigerian naira by reducing the demand for foreign exchange while ensuring a stable supply of crude to the Dangote Refinery.
This massive facility has the capacity to process up to 650,000 barrels of crude oil per day, making it a critical player in Nigeria’s energy sector and economic landscape.NNPC stated that the refinery has received at least 48 million barrels of crude since the agreement began, totaling over 84 million barrels since operations started in 2023.
