The Nigerian National Petroleum Company Ltd. (NNPC) has confirmed ongoing negotiations with Dangote Refinery to extend a crude oil supply agreement in local currency, a move aimed at easing pressure on the naira and ensuring a steady supply of crude to the 650,000-barrel-per-day refinery—the largest in Africa.
The original contract, first signed in October 2024, is set to expire at the end of March 2025. According to the NNPC, at least 48 million barrels of crude oil have been supplied to the Dangote Refinery under the current agreement, with a total of 84 million barrels delivered since the plant commenced operations in 2023.
The proposed contract extension underscores Nigeria’s commitment to supporting local refining capacity while addressing foreign exchange challenges and reducing the country’s reliance on imported petroleum products.