Nigeria’s crude oil exports are facing mounting challenges as 12 March-loading cargoes remain unsold, highlighting a sluggish market for the country’s key commodity. Traders report that buyers have yet to materialize for these shipments, while much of April’s export schedule also remains available.
The situation is compounded by fierce competition from cheaper alternatives such as Kazakh CPC Blend, US WTI, and Mediterranean sweet crudes. The start of Europe’s refinery maintenance season has further dampened demand, putting downward pressure on Nigerian crude prices.
At the same time, Nigeria’s state-owned NNPC is locked in negotiations to extend its crude supply agreement with the Dangote refinery. Since October 2024, NNPC has been supplying nearly 300,000 barrels per day in naira to stabilize the local currency and curb inflation. However, the sustainability of this arrangement remains in question as NNPC faces competing supply commitments.
With global demand shifting and Nigeria’s export market facing headwinds, the oil sector’s near-term trajectory remains uncertain. The outcome of NNPC’s talks with Dangote, coupled with broader market dynamics, will be critical in shaping Nigeria’s oil trade strategies in the months ahead.Source: BusinessDay.ng
