THE $20 billion Dangote Refinery has announced a temporary suspension of petroleum product sales in Naira, citing a disparity between its Naira-based revenue and the crude oil it receives from the Nigerian National Petroleum Company Limited (NNPCL).
In a statement released today, the company explained that its decision was necessary to prevent a misalignment between its sales income and crude purchase obligations, which are currently denominated in U.S. dollars.
This move could lead to a rise in the prices of premium energy products such as diesel and petrol across Nigeria.
Many fuel consumers may face further financial strain as a result.
The refinery stated that its Naira-denominated sales have exceeded the volume of crude it has received in the local currency from NNPCL.
To rectify this, it must temporarily align its sales currency with its procurement currency.
Despite this changes, the refinery reiterated its commitment to serving the Nigerian market, stating that it will resume selling in Naira once it starts receiving Naira-denominated crude shipments from NNPCL.
“As soon as we receive an allocation of Naira-based crude cargoes from NNPCL, we will immediately resume sales in Naira,” the company assured.
The refinery’s announcement follows an ongoing pricing dispute with NNPCL.
In July 2024, the Federal Executive Council (FEC) directed NNPCL to supply crude oil to Dangote and other local refineries in Naira to stabilize fuel prices and reduce pressure on the dollar.
In March 2025, NNPCL clarified that its crude sales agreement with Dangote was initially structured for six months, set to expire by the end of March.
The state-owned company revealed that it had provided Dangote Refinery with over 48 million barrels of crude since October 2024 under the Naira-based arrangement.
Nigeria continues to grapple with energy challenges, with its state-owned refineries only recently restarting operations after years of inactivity.
The country remains largely dependent on imported refined petroleum products, primarily sourced by NNPCL.
Since the removal of fuel subsidies in May 2023, petrol prices have skyrocketed from around ₦200 per liter to nearly ₦1,000, worsening economic difficulties for citizens reliant on fuel for transportation and power generation.
Dangote Refinery, which began operations in December 2024, currently processes 350,000 barrels per day, with plans to ramp up production to its full capacity of 650,000 barrels per day by year-end. The refinery has already begun supplying diesel, aviation fuel, and petrol to the market.