Dangote Refinery Suspends Sale of Petroleum Products in Naira, Cites Dollar-Denominated Crude Costs

By Joycelyn Ellakeche Adah

Dangote Petroleum Refinery has announced a temporary suspension of petroleum product sales in Naira, citing the need to align its sales revenue with its crude oil procurement costs, which are currently denominated in U.S. dollars.

In a statement issued on Wednesday, March 19, 2025, the refinery’s management explained that its Naira sales have exceeded the value of Naira-denominated crude it has received, making the adjustment necessary.

The company assured customers that sales in Naira would resume once it receives an allocation of locally priced crude from the Nigerian National Petroleum Company Limited (NNPCL).

The statement reads: “Dear Valued Customers, 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. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”

This decision comes amid ongoing challenges in Nigeria’s foreign exchange market, with businesses struggling to balance transactions between the weakening Naira and dollar-denominated obligations.

Dangote Refinery, which recently ramped up operations, has been purchasing crude at international market rates, further complicating its ability to maintain sales in the local currency.

Meanwhile, the refinery has also dismissed online reports, alleging that loading activities were halted due to ticketing fraud, calling such claims “malicious falsehood.”

The company emphasized that its systems remain robust and that there have been no fraud-related disruptions.

Persecondnews recalls that Dangote Refinery, Africa’s largest petrochemical complex, began refining operations earlier this year, aiming to reduce Nigeria’s reliance on imported fuel and stabilize domestic supply.