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Dangote Refinery has temporarily halted the sale of petroleum products in Naira following 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 align its sales revenue with its crude oil purchase obligations, which are currently denominated in U.S. dollars.
“Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.
“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 online reports claiming that loading operations were halted due to ticketing fraud, calling them “malicious falsehoods.”
“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira,” the company assured.
The suspension follows a meeting in Abuja between Dangote Group President, Aliko Dangote, and Finance Minister Wale Edun on Tuesday, in a last-minute attempt to salvage the crude-for-Naira arrangement. The talks, however, failed to yield a resolution.
Although the Federal Government previously denied reports of discontinuing the crude-for-Naira deal, Dangote Refinery’s latest position confirms its termination.
The decision is expected to have significant economic implications, potentially driving up fuel prices and intensifying demand for U.S. dollars in the foreign exchange market.
It could also accelerate the dollarization of the economy, contradicting the government’s stated efforts to reduce reliance on foreign currency transactions.
