Dangote Refinery has suspended the sale of petroleum products in Naira due to the Federal Government’s failure to renew its crude-for-Naira deal with the Nigerian National Petroleum Company Limited (NNPCL).
In a statement on Wednesday, the refinery explained that the decision was necessary to prevent a mismatch between its sales revenue and crude oil purchase obligations, which are currently denominated in U.S. dollars.
“Our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we received. To align with our crude procurement currency, we must temporarily adjust our sales currency,” the company stated.
Dangote Refinery also dismissed online reports alleging that it halted product loading due to ticketing fraud, describing them as “malicious falsehood.”
The company assured Nigerians of its commitment to serving the local market and stated that sales in Naira would resume once it receives an allocation of Naira-denominated crude from NNPC.
Meanwhile, Dangote Group President, Alhaji Aliko Dangote, met with the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in Abuja on Tuesday in a last-minute effort to sustain the Naira-for-Crude deal, but the discussions yielded no positive outcome.
Although the Federal Government recently denied halting the arrangement, Dangote Refinery’s position suggests otherwise.
The development could lead to increased fuel prices and worsen foreign exchange challenges, further deepening concerns over the dollarisation of the Nigerian economy.
