Dangote Refinery Halts Naira Sales Over Crude Supply Dispute With NNPC

In a significant shift, Dangote Refinery has suspended the sale of petroleum products in naira, citing a stalled crude supply agreement with the Nigerian National Petroleum Company Limited (NNPC). The refinery, which currently sources crude oil in U.S. dollars from the global market, announced that it would not be loading petroleum products for the Nigerian market under the prevailing circumstances.

Reason for the Suspension

In a statement released on Wednesday, March 19, 2025, the refinery’s management explained that the decision was necessary to align its sales revenue with its crude oil purchase commitments, which are presently denominated in U.S. dollars.

“This decision is necessary to prevent a mismatch between our sales proceeds and our crude oil procurement obligations, which are currently settled in U.S. dollars,” the statement read.

The management further disclosed that its sales in naira had exceeded the value of the naira-based crude it had received, prompting a temporary adjustment in its sales currency.

Addressing Fraud Allegations

Dangote Refinery also dismissed allegations that it halted loading operations due to fraudulent ticketing issues, describing such claims as false and misleading.

“We have noticed reports circulating online suggesting that our decision to stop loading petroleum products was due to ticketing fraud. This is a malicious falsehood. Our operational systems remain robust, and we have encountered no fraud-related concerns,” the statement emphasized.

Future Plans for Naira Sales

Despite the temporary halt, the refinery reaffirmed its commitment to serving the Nigerian market, assuring that it would resume selling petroleum products in naira once it receives an allocation of naira-denominated crude cargoes from NNPC.

“As soon as we secure an allocation of crude oil in naira from NNPC, we will immediately resume petroleum product sales in the local currency,” the refinery stated.

This development raises concerns about Nigeria’s fuel supply and exchange rate stability, as the nation continues to grapple with foreign exchange challenges.

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