In a significant development, Dangote Refinery has announced its decision to halt the sale of petroleum products in naira, citing unresolved issues in the naira-for-crude oil deal with the Nigerian National Petroleum Company Limited (NNPC). The refinery’s management confirmed this move in a statement on Wednesday, March 19, 2025, underlining that the decision was essential for maintaining operational efficiency amid fluctuating market conditions.
The key reason for the suspension is the refinery’s current sourcing of crude oil in U.S. dollars from the international market. As Dangote Refinery sources its crude stock in dollars, it faces a mismatch between its sales proceeds and the obligations for crude oil purchases, which are denominated in U.S. dollars. The refinery’s management explained the situation in a statement: “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 move will prevent the refinery from loading petroleum products for the Nigerian market as long as the issue remains unresolved. The management elaborated on the financial imbalance, saying, “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.”
Contrary to some online reports, the refinery has vehemently denied claims that its suspension of petroleum product loading is linked to ticketing fraud. In a separate statement, Dangote Refinery dismissed these reports as “malicious falsehoods,” asserting, “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.”
Despite the temporary halt in sales, Dangote Refinery reassured the Nigerian public of its commitment to the market. The company emphasized that it remains fully dedicated to serving the local market sustainably and efficiently. “We remain committed to serving the Nigerian market efficiently and sustainably,” the statement noted. “As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira.”
