The Dangote Petroleum Refinery has confirmed it will suspend fuel sales in the Nigerian naira. The company explained that continuing to sell in naira would create a mismatch, since its crude oil purchases are denominated in US dollars. 

In a public statement, Dangote said that “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 did not explicitly say it has “sold off all fuel in naira,” but it made clear that until it secures more crude cargoes priced in naira, it cannot continue selling products in local currency. 

Analysts note that the refinery was operating under a six-month deal with the Nigerian National Petroleum Company (NNPC) that allowed crude purchases in naira, but that arrangement has run into challenges.  The mismatch between naira-based sales and dollar-based costs has put financial pressure on operations. 

Observers warn that shifting to foreign currency pricing for fuel may push petrol prices higher for consumers.  The refinery’s decision reflects deeper currency and supply chain pressures in Nigeria’s energy sector.

The suspension is described by Dangote as temporary. The company said when it receives new crude volumes in naira from NNPC or other sources, it will resume selling in the local currency. 

This move has sparked debate among labour and industry stakeholders. Some argue the decision could worsen inflation in petrol prices, while others say it underscores the need for more stable foreign exchange arrangements for domestic producers.

For Nigeria’s fuel market, this announcement marks a pivotal moment. Dangote’s refinery is central to efforts to reduce imports and enhance domestic refining. The shift in pricing strategy will be closely watched by marketers, regulators, and citizens alike.