Dangote Refinery suspends sale of petrol in Naira

Dangote Refinery has announced a temporary suspension of petroleum product sales in naira, citing the need to align its sales currency with its crude oil procurement obligations, which are currently denominated in U.S. dollars.

In a statement issued on Tuesday, the refinery wrote:

 “We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.

”Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust, and we have had no fraud issues.

”We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira. We appreciate your understanding and cooperation during this period.”

This announcement follows reports that negotiations for a new naira-for-crude deal between Dangote Refinery and the federal government have stalled.

The previous agreement, which allowed local refineries to purchase crude oil in naira and sell refined petroleum products in the same currency, was designed to boost supply, reduce reliance on dollar transactions, and lower fuel prices.

However, according to report, the refinery will continue loading petroleum products for export, as it currently sources all its crude oil from the international market in dollars.

The Nigerian National Petroleum Company (NNPC) Limited, which has supplied over 84 million barrels of crude oil to Dangote Refinery since its operations began in 2023, recently confirmed that the existing naira-for-crude deal will expire at the end of March 2025.

While negotiations for a renewed agreement are ongoing, there has been no significant progress.

Despite the temporary suspension, Dangote Refinery has assured customers of its commitment to the Nigerian market and stated that sales in naira will resume once crude oil is supplied under a renewed naira-for-crude agreement.

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