Dangote Refinery Halts Sale of Fuel in Naira, Gives Reasons

• Pump prices of fuel and other petroleum products are set to increase, as the Dangote Refinery announced that it will now sell in dollars
• The company clarified the reasons for suspending naira sales and appealed for public understanding
• The company, in its statement, hinted at when it would return to selling its products in naira

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Dangote Petrochemical refinery has announced a suspension of the sales of petroleum products in naira.

This update was shared in a post on group X (formerly Twitter handle), @DangoteGroup on Wednesday, March 19, 2025.

This change in sales currency is expected to affect sales of all its petroleum products including premium motor spirit (PMS), diesel, and others.

The statement noted that this was a temporary decision made out of necessity, and assured that it would be reversed as soon as possible.

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Dangote Refinery explains why it halted naira sales

According to the statement, the refinery explained that it halted the sales of petroleum products in naira to enable it to meet its crude oil purchase obligations.

It noted that its crude oil purchases were now denominated in U.S. dollars, and continual sales in naira could lead to a mismatch between the sales proceeds and crude oil purchase obligations.

Dangote Refinery's statement read:

“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.”

The company promised to resume sales of petroleum products in naira once it starts getting naira-for-crude cargoes from the Nigerian National Petroleum Corporation Limited (NNPCL).

It stated:

“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.”

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Dangote Refinery debunks ticketing fraud rumours

The company also debunked rumours claiming that the refinery was having issues with ticketing fraud and had stopped loading petroleum products.

The statement affirmed that its systems were robust and no incidences of fraud had been recorded.

NNPCL announces end of naira-for-crude deal

The Nigerian National Petroleum Corporation (NNPCL) earlier announced that the naira-for-crude deal with Dangote Refinery would end in March 2025.

The state-owned oil firm said that the deal lasted six months and discussions were ongoing to draw up a new agreement to replace the pilot scheme.

Recall that about 12 consignments loaded with Nigeria’s crude oil were reportedly stranded at sea since March 10, as buyers are still being sought.

Dangote Refinery starts buying crude from another country

In another report by Legit.ng, the Dangote Petroleum Refinery bought its first cargo of Equatorial Guinea’s medium-sweet, Ceiba crude.

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After buying from Algeria, Dangote Refinery finds another African country to import crude oil

This marked another step in its efforts to diversify crude supply sources amid struggles to get enough from the NNPCL.

The refinery had earlier sourced crude oil from Angola, and Algeria, and industry experts say the company is out to get the best deals.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng