Dangote Petroleum Refinery has announced a temporary suspension of petroleum product sales in Naira, citing the need to align its sales proceeds with its crude oil purchase obligations, which are denominated in U.S. dollars. The decision, communicated in a statement released on March 19, 2025, aims to address a mismatch between Naira sales and dollar-denominated crude oil procurement.
The refinery clarified that its sales of petroleum products in Naira have exceeded the value of Naira-denominated crude oil received to date. As a result, the temporary adjustment to dollar-based sales is necessary to maintain financial stability and operational efficiency.
Clarification on Fraud Allegations
The management also addressed rumors circulating online alleging that the suspension was due to ticketing fraud. The refinery categorically denied these claims, describing them as “malicious falsehood.”
“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,” the statement read.
Commitment to the Nigerian Market
Dangote Petroleum Refinery reaffirmed its commitment to serving the Nigerian market efficiently and sustainably. The refinery assured customers that sales in Naira would resume as soon as it receives an allocation of Naira-denominated crude cargoes from the Nigerian National Petroleum Company Limited (NNPC).
“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 statement added.
Implications for the Nigerian Economy
The temporary suspension of Naira-denominated sales highlights the challenges faced by refineries in managing currency mismatches in a volatile economic environment. The decision underscores the importance of aligning revenue streams with procurement obligations to ensure financial stability and operational continuity.
For consumers, the suspension may lead to short-term disruptions in the availability of petroleum products, particularly for those who rely on Naira transactions. However, the refinery’s assurance of a prompt resumption of Naira sales once Naira-denominated crude is received provides some reassurance.
Broader Industry Impact
The move by Dangote Petroleum Refinery reflects broader issues within Nigeria’s oil and gas sector, including the need for a more stable and predictable foreign exchange regime. The reliance on dollar-denominated crude purchases exposes refineries to currency risks, which can impact pricing and availability of petroleum products.
Stakeholders are calling for policy measures to address these challenges, including increased allocation of Naira-denominated crude to local refineries and reforms to stabilize the foreign exchange market.
Next Steps
As Dangote Petroleum Refinery works to resolve the currency mismatch, stakeholders will be closely monitoring developments in the sector. The resumption of Naira-denominated sales will depend on the refinery’s ability to secure Naira-denominated crude cargoes from NNPC.
The refinery’s management expressed gratitude to its customers for their understanding and cooperation during this period, emphasizing its commitment to maintaining transparency and efficiency in its operations.
