NIyi JACOBS
Dangote Refinery has announced a temporary suspension of petroleum product sales in Naira, sparking concerns of a looming fuel price hike in Nigeria.
The refinery, which has a capacity of 650,000 barrels per day, disclosed this decision on Wednesday through a statement posted on its official X account. According to the statement, the suspension aims to address a mismatch between the company’s sales proceeds and crude procurement obligations, which are currently denominated in U.S. dollars.
The refinery explained that its sales of petroleum products in Naira have exceeded the value of Naira-denominated crude received, forcing the company to adjust its sales currency.
“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 statement read.
The company, however, dismissed reports that it had stopped loading due to an incident of ticketing fraud, describing such claims as malicious falsehoods.
The development has heightened anxiety within Nigeria’s downstream oil sector, especially as discussions between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL) over a new Naira-for-crude contract appear to have stalled.
With ex-depot prices currently at N815 per litre, the suspension could trigger a fresh round of fuel price increases if unresolved. The refinery stated it would resume Naira-based sales once it receives an allocation of Naira-denominated crude cargoes from the NNPCL.
