In a move that may exacerbate Nigeria’s fuel woes, Dangote Refinery has halted petrol sales in naira, citing a currency mismatch that makes it difficult to reconcile dollar-denominated crude oil purchases with local sales. The suspension has sparked concerns about the refinery’s operational sustainability and the potential impact on the country’s already volatile fuel market.

Dangote Refinery has halted the sale of its petroleum products in naira, citing the need to prevent a mismatch between its sales revenue and crude oil purchase obligations, which are currently denominated in U.S. dollars.

The refinery communicated this decision in a circular sent to its customers yesterday, as obtained by THISDAY.

Dangote Refinery stated that its sales of petroleum products in naira had so far surpassed the value of naira-denominated crude it received, necessitating a temporary shift in its sales currency to match its crude procurement currency.

The Aliko Dangote-owned refinery reaffirmed its commitment to efficiently and sustainably serving the Nigerian market. It assured that once it receives an allocation of naira-denominated crude cargoes from the Nigerian National Petroleum Company Limited (NNPC), it will promptly resume petroleum product sales in naira.

Dangote Refinery also dismissed online reports alleging that it had halted product loading due to a ticketing fraud incident, labeling the claims as malicious falsehoods.

In a statement, the refinery clarified, “Dear valued customers, we wish to inform you that Dangote Petroleum Refinery has temporarily suspended 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.

“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust and we have had no fraud issues.

“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. 

“We appreciate your understanding and cooperation during this period.”

Dangote Refinery reassured its customers of its commitment to providing petroleum products efficiently and sustainably. The company emphasized that once it receives Naira-denominated crude allocations from the NNPC, it will promptly resume sales in the local currency. In the meantime, it urged the public to disregard misinformation and rely on official communications for accurate updates regarding its operations.