Dangote halts sale of petrol in naira as Naira-for-Crude deal delays

Dangote Petroleum Refinery, Nigeria’s largest refinery, has announced a temporary suspension of the sale of petroleum products in naira.

The decision, communicated in a statement released on Tuesday, is aimed at addressing a mismatch between the refinery’s sales proceeds and its crude oil purchase obligations, which are denominated in U.S. dollars.

The suspension comes amid delays in the implementation of the naira-for-crude oil swap deal with the Nigerian National Petroleum Company Limited (NNPCL).

The deal, designed to supply domestic refineries with crude oil in exchange for refined petroleum products, has yet to materialize, leaving Dangote Refinery to rely on dollar-denominated crude oil purchases.

Read also: Dangote may halt petrol supply to Nigeria as naira-for-crude deal delays

Why the Suspension?

In the statement titled *“Temporary Suspension of Sales of Petroleum Products in Naira,”* the management of Dangote Petroleum Refinery explained that the decision was necessary to align its sales currency with its crude procurement currency.

“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 statement read.

The refinery also dismissed reports circulating online claiming that the suspension was due to an incident of ticketing fraud. Describing the claims as “malicious falsehood,” the management emphasized that its systems remain robust and that no fraud issues have been encountered.