Oil marketers have rejected Dangote Petroleum Refinery’s decision to sell refined petroleum products in dollars, warning it could destabilize Nigeria’s economy. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) urged the government to block the move, insisting that fuel transactions must remain in naira.
PETROAN President Billy Gillis-Harry said the policy has already triggered panic buying among marketers fearing price hikes and potential shortages. He warned that dollar sales would increase inflation and put more pressure on the naira.
“We strongly oppose selling petroleum products in dollars within Nigeria. This will strain the economy, increase forex demand, and worsen inflation. The government must ensure all local transactions remain in naira,” he stated.
Despite the recent restart of three major refineries—including the 650,000-barrels-per-day Dangote Refinery—PETROAN noted that Nigeria’s fuel supply still falls short of demand. The association insists that fuel imports must continue to prevent shortages and keep prices stable.
Meanwhile, Dangote Refinery has ramped up exports, shipping about 1.7 million barrels of aviation fuel (Jet A1) to the United States this month. Analysts predict these shipments will lower U.S. jet fuel prices ahead of the peak summer travel season, with Dangote emerging as a major supplier in the Atlantic Basin.
The Manufacturers Association of Nigeria (MAN) has also weighed in on Dangote’s impact, praising its recent production of polypropylene. MAN Director-General Segun Ajayi-Kadir said this development could revive Nigeria’s struggling textile industry and save the country $267 million in import costs.
“Local polypropylene production is a game-changer. It will reduce manufacturers’ dependence on forex, create jobs, and boost the economy. Instead of relying on imports, Nigeria could soon become a net exporter,” Ajayi-Kadir said.
Dangote’s $2 billion petrochemical plant in Lagos is designed to produce 900,000 metric tonnes of polypropylene annually. Industry experts believe this will reduce Nigeria’s reliance on imports from Saudi Arabia, South Korea, China, and India, strengthening local industries and cutting foreign exchange outflows.
