Dangote Refinery Shifts to Dollar Transactions Over Currency Imbalance

Dangote Petroleum Refinery has temporarily suspended the sale of its petroleum products in Naira, citing a significant disparity between its sales revenue in Naira and its crude oil procurement obligations, which are priced in U.S. dollars.

The decision comes as the refinery noted that its Naira-based sales have exceeded the quantity of locally priced crude received. Consequently, the company announced it would align its sales currency with its dollar-denominated crude purchase commitments until further notice.

In a statement released on March 19, 2025, the company also refuted online rumors of halted operations due to alleged ticketing fraud, labeling such claims as baseless. According to the statement, “Our systems are robust, and there are no fraud issues. We remain dedicated to efficiently and sustainably serving the Nigerian market. Sales in Naira will resume as soon as we receive allocations of Naira-priced crude from NNPC.”

This decision follows the Nigerian National Petroleum Company Limited’s (NNPCL) recent clarification on ending the naira-for-crude initiative, which provided local refineries with crude oil in the local currency. NNPCL disclosed that it had supplied Dangote Refinery with 84 million barrels of crude since its operations began.

The announcement also brings to light ongoing concerns raised by the Independent Petroleum Marketers Association of Nigeria (IPMAN) regarding fuel price fluctuations, which have affected its members. These pricing battles have resulted in reduced consumer costs for Premium Motor Spirit (PMS), which currently sells between N865 and N950 per liter in Awka.

Earlier this year, Dangote Refinery reduced its ex-depot price for PMS from N890 to N825 per liter, reflecting its efforts to address market challenges and support local fuel supply.