Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products in Naira, citing a misalignment between its revenue and crude oil purchase obligations, which are settled in U.S. dollars. The decision, announced on March 19, 2025, reflects the company’s need to stabilize its operations amid growing financial pressures.
In a statement, Dangote Refinery explained that its sales in Naira had exceeded the value of crude oil it received in the local currency. To address this, the company has decided to align its sales currency with its crude procurement obligations.
“Our attention has also been drawn to reports on the internet claiming that we have stopped loading due to an incident of ticketing fraud. This is a malicious falsehood. Our systems are robust, and we have had no fraud issues,” the company stated.
Despite the suspension, Dangote assured that it remains committed to the Nigerian market and would resume Naira sales once it receives an allocation of Naira-denominated crude oil from the Nigerian National Petroleum Company Limited (NNPCL).
This development follows the federal government’s initial agreement on a Naira-for-crude arrangement, which was meant to ease local refinery operations. However, NNPCL has since clarified that the arrangement has ended, revealing that it supplied Dangote Refinery with 84 million barrels of crude oil since operations began.
The refinery’s decision to halt Naira transactions comes at a time of increasing competition with NNPCL over fuel pricing. The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised concerns about how the ongoing price war is affecting its members, as fluctuating costs make business operations more difficult. Currently, in Awka, Premium Motor Spirit (PMS) is selling between N865 and N950 per liter. Meanwhile, Dangote Refinery recently reduced its ex-depot petrol price from N890 to N825 per liter, effective February 27, 2025, in a bid to attract more buyers.
With independent marketers likely to depend on larger industry players for access to petroleum products, short-term disruptions in fuel supply are expected. Consumers and businesses may also face uncertainty as fuel prices continue to fluctuate.
By temporarily switching to dollar-denominated sales, Dangote Refinery is looking to prevent financial losses and ensure long-term stability. However, the move could have broader implications for the Nigerian petroleum market, especially if it influences other local refineries to ollow suit.
