Revealed: Why 12 vessels with Nigerian crude oil remain unsold

• About 12 consignments loaded with Nigeria’s crude lipid since March 10 person remained unsold arsenic buyers are inactive being sought
• The improvement presents a steep situation for Nigeria’s lipid manufacture arsenic buyers present similar cheaper alternatives from Kazakhstan and different places 
• The concern presents a situation for the system and whitethorn pb to a driblet successful the prices of April cargoes, which has already been loaded

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

Nigeria’s lipid assemblage faces a beardown situation arsenic 12 March-loading crude cargoes stay stranded astatine oversea and unsold, showing the anemic request for the country’s exports.

According to traders, arsenic of March 10, 2025, buyers for the consignments were inactive being sought.

Nigeria's system is threatened arsenic 12 crude lipid cargoes stay unsold. Credit: bfk92
Source: Getty Images

Nigerian crude lipid faces competition

The dilatory income travel arsenic Nigerian crude faces beardown contention from Kazakh-origin airy sour CPC Blend, US Western Texas Intermediate (WTI) and the Mediterranean saccharine crudes successful Europe.

Reports accidental the glut of comparatively priced alternatives has caused a driblet successful the worth of the April loading of Nigerian cargoes, expanding the country’s challenges.

The improvement follows the renegotiation of an hold of a six-month crude proviso woody betwixt the Nigerian National Petroleum Company Limited and the Dangote Refinery.

Under the existent arrangement, NNPC has supplied the refinery with astir 300,000 barrels of crude regular successful naira since October 2024 arsenic portion of a programme to stabilise the naira and trim inflation.

The mega refinery began operations successful 2023 and has relied connected NNPC for its crude lipid needs, with implicit 84 cardinal barrels supplied.

NNPC and Dangote are renegotiating lipid deals

Data shows that locally sourced lipid accounted for implicit 80% of Dangote’s crude deliveries betwixt January 2024 and February 2025.

The naira-for-crude woody has been liable for reducing petrol prices, curbing ostentation and the naira stability.

Experts accidental the deal’s aboriginal is uncertain arsenic crude lipid prices are acceptable successful dollars, with Dangote paying the naira equivalent astatine a discounted rate.

Angus reported that NNPC’s quality to proceed income discount is hampered by its obligations to money different crude lipid deals.

Also, the authorities lipid institution whitethorn person constricted volumes for merchantability to home refiners, arsenic NNPC reportedly person different proviso deals extending to 2030.

Dangote was initially entitled to wage successful naira for the archetypal 10 consignments loaded monthly, with accepted cargoes priced successful USD.

However, NNPC reportedly present offers much cargo strictly successful dollars, portion others let naira payments.

Further changes to the agreements of an extended programme could origin Dangote to rise its dependence connected overseas crude imports.

Dangote Refinery imports crude from Equatorial Guinea

According to sources, Dangote plans to root fractional of its crude needs from import markets and is presently constructing 8 retention tanks for the move.

Legit.ng previously reported that the 650,000 bpd-capacity refinery precocious bought crude oil from Equatorial Guinea.

This marks different measurement successful its efforts to diversify crude proviso sources arsenic it struggles to get capable from section sources. 

NNPC whitethorn person nary prime but to proceed supplying home refiners nether the close of archetypal refusal contained successful the Petroleum Industry Act (PIA).

The Domestic Crude Crude Supply Obligation (DCSO) inaugural operated by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) mandates monthly meetings betwixt section refiners and operators to reappraisal accumulation and loading programmes.

Pipeline detonation threatens Nigeria’s lipid production

Nigeria’s crude lipid accumulation was connected the upswing, with the state reportedly exceeding its OPEC quota by 70,000 barrels successful January.

President Bola Tinubu's authorities increases crude lipid production. Credit: State House
Source: Getty Images

However, the country’s lipid accumulation deed the rocks connected Tuesday, March 18, 2025, erstwhile the Trans-Niger Pipeline, Nigeria’s largest lipid pipeline,  exploded.

Reports accidental the detonation whitethorn person been down President Bola Tinubu declaring a authorities of exigency successful Rivers State the aforesaid day.

Mixed fortunes for Nigeria arsenic lipid prices fall

Legit.ng earlier reported that Nigeria’s Bonny Light crude dropped by 10.6% to $73.53 per tube from $84.02 successful January, sending fears implicit the show of the Nigerian government’s 2025 fund and gross target.

The 2025 fund benchmarked lipid prices astatine $75 per barrel, lipid accumulation astatine 2.06 cardinal barrels per day, and a gross projection of N36.35 trillion, of which 56% was projected to travel from lipid sales.

Experts accidental the diminution successful lipid prices represents a 6.6% imaginable dip successful Nigeria’s lipid gross target, worsened by declining lipid output beneath 2.06mbpd.

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Source: Legit.ng