Dangote Petroleum Refinery has announced a temporary suspension of petroleum product sales in Naira, citing a mismatch between its sales proceeds and crude oil purchase obligations.
The refinery, in a statement released on Wednesday 19 March, 2025 attributed the decision to the fact that its crude oil procurement is denominated in U.S. dollars, while its Naira-based sales have outpaced the value of Naira-denominated crude it has received.
“We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira,” the management stated in a press release addressed to its valued customers.
“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.”
The refinery emphasised that this move is a strategic adjustment to ensure financial stability amid its operational realities.
The statement further clarified that, “to date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received,” necessitating the shift.
The refinery assured customers that it remains committed to resuming Naira-based sales as soon as it receives an allocation of Naira-denominated crude cargoes from the Nigerian National Petroleum Corporation (NNPC).
“As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira,” the management pledged.
Addressing rumours circulating online, Dangote Refinery debunked claims that the suspension was linked to ticketing fraud. “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,” the statement read.
The refinery stressed that its systems are robust and that no fraud-related issues have impacted its operations.
The temporary suspension underscores broader challenges in Nigeria’s energy sector, particularly around currency fluctuations and crude oil supply arrangements.
Dangote Refinery reiterated its dedication to serving the Nigerian market sustainably, stating, “We remain committed to serving the Nigerian market efficiently and sustainably.”
The management thanked customers for their understanding and cooperation during this period, signaling optimism for a swift resolution once the NNPC aligns crude allocations with the refinery’s needs.
As Nigeria’s largest single-train refinery, Dangote’s operations are pivotal to reducing the country’s reliance on imported petroleum products. Industry watchers will be keenly observing how this development shapes fuel supply dynamics in the coming weeks.
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