Dangote Petroleum Refinery has announced a temporary halt in the sale of petroleum products in Naira, citing an imbalance between its sales proceeds and crude oil purchase obligations, which are denominated in U.S. dollars.
The announcement was conveyed in a statement issued on March 19, 2025, where the company explained that its Naira-denominated sales have exceeded the value of Naira-priced crude it has received so far.
As a result, it has decided to temporarily align its sales currency with its crude procurement obligations.
“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.
“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.
“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,” the company stated.
What you should know
The federal government had earlier agreed on the naira-for-crude but the Nigeria National Petroleum Company Limited (NNPCL) has clarified the end of the Naira-for-Crude arrangement with local refineries, disclosing that it supplied the Dangote refinery with 84 million barrels of crude oil since it began operation.
- The Independent Petroleum Marketers Association of Nigeria (IPMAN) had raised concerns over the ongoing fuel price battle between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery and Petroleum Company, stating that the price fluctuations are severely impacting its members.
- The price competition has led to reductions in the cost of Premium Motor Spirit (PMS) for consumers — currently selling between N865 and N950 per liter in Awka.
- Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), popularly known as petrol, from N890 to N825 per litre, effective February 27, 2025.
- On October 1, 2024, the federal government officially announced the commencement of crude oil sales to Dangote Refinery and other local refineries in the local currency.
What this means
Independent marketers may not, in the immediate term, be able to directly lift oil from Dangote Refinery as they might have to go through the bigger players in the industry.
- Consumers and marketers may face uncertainty, in the short term, due to the temporary halt in Naira sales and ongoing price fluctuations.
- The Dangote refinery aims to stabilize its operations by aligning its sales currency with its crude oil purchase obligations, ensuring financial sustainability.
- This development may also have an effect on oil prices in the domestic market.
