Nigeria’s Dangote Petroleum Refinery has temporarily suspended fuel sales to the domestic market due to complications in its naira-for-crude deal with the Nigerian National Petroleum Company (NNPC).
In a statement issued Wednesday, Dangote Refinery cited a mismatch between sales proceeds and crude oil purchase obligations as the reason for the suspension.
The company emphasized that the decision was temporary and aimed at maintaining financial balance.
“Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira,” the statement read.
“This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.”
The refinery previously sold petroleum products in naira under an agreement where it procured crude from NNPC in the local currency.
However, since March 10, NNPC discontinued the naira-for-crude arrangement, forcing Dangote Refinery to reassess its sales strategy.
The company also dismissed online claims that the halt in sales was linked to ticketing fraud, calling such reports “malicious falsehood.”
It assured the public of its commitment to the Nigerian market and affirmed that sales in naira would resume once new allocations of naira-denominated crude were secured.
As Nigeria’s largest private refinery, Dangote plays a critical role in the country’s fuel supply.
The suspension raises concerns about potential disruptions in the petroleum market, adding pressure to an already volatile sector.
Industry stakeholders now await further developments as negotiations between Dangote and NNPC continue.
