Dangote Refinery Suspends Naira Sales as NNPCL Crude Deal Falters

The Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products in naira after the failure of naira-for-crude negotiations between the $20 billion Lekki-based plant and the Nigerian National Petroleum Company Limited.

Following the refinery’s announcement on Wednesday, the cost of loading petrol at private depots in Lagos surged to ₦900 per litre, up from less than ₦850 per litre before the decision.

Industry experts and oil marketers cautioned that Dangote Refinery’s halt in naira sales could further strain the foreign exchange market, as dealers would now need to secure large amounts of U.S. dollars to purchase petroleum products.

Meanwhile, multiple industry sources linked the breakdown of the naira-for-crude deal to NNPCL’s substantial forward sales of crude, which they criticized.

They emphasized that the national oil company had committed large volumes of its yet-to-be-produced crude oil as collateral for loans from various international financial institutions. This has made it difficult for the company to secure enough crude for the domestic market.

In a statement on Wednesday, the Dangote Group clarified that the suspension of petroleum product sales in naira is only temporary.

The statement read: “Dear valued customers, we wish to inform you that the 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 US 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.”

The refinery also dismissed online claims that it was halting loading due to a ticketing fraud incident.

“This is a malicious falsehood. Our systems are robust, and we have had no fraud issues. We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” the statement read.