Dangote Refinery Halts Naira-Denominated Fuel Sales Amid Currency Mismatch
Lagos, Nigeria – The Dangote Petroleum Refinery has announced a temporary suspension of petroleum product sales in the local currency, the naira, to address a discrepancy between its sales revenue and crude oil purchase obligations, which are denominated in U.S. dollars.
In a statement released on March 19, 2025, the refinery’s management explained that their sales of petroleum products in naira have surpassed the value of naira-denominated crude oil received. This imbalance necessitates aligning their sales currency with their procurement currency to maintain financial stability.
The refinery emphasized its commitment to the Nigerian market and assured that once they receive allocations of naira-denominated crude cargo from the Nigerian National Petroleum Company (NNPC) Limited, they will promptly resume petroleum product sales in naira. Addressing circulating rumors, the management refuted claims of halting operations due to ticketing fraud, labeling such reports as malicious falsehoods. They affirmed the robustness of their systems and the absence of fraud-related issues.
This development underscores the challenges faced by Nigerian refineries in balancing local currency sales with international procurement obligations, highlighting the complexities within the nation’s oil and gas sector.
