Dangote Refinery has announced that it will temporarily stop selling petroleum products in naira. The company explained that this decision was necessary to avoid a financial imbalance between its sales revenue and the cost of purchasing crude oil, which is priced in US dollars.
The refinery, which has a daily capacity of 650,000 barrels, has been working with fuel marketers to bring down the cost of petroleum products in Nigeria. However, as global oil prices fluctuate, the company said it had to make this adjustment to maintain financial stability.
“We wish to inform the public that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to prevent a mismatch between our sales revenue and crude oil purchase obligations, which are priced in US dollars,” the company stated.
“So far, our sales in naira have exceeded the value of naira-denominated crude we have received. Because of this, we must temporarily adjust our sales currency to align with the cost of procuring crude oil.”
Addressing online rumors about operational issues, the company clarified that reports suggesting a halt in loading due to ticketing fraud were false. “Our systems are robust, and we have experienced no fraud-related incidents,” the statement read.
Dangote Refinery reassured the Nigerian market that it remains committed to supplying petroleum products efficiently. The company also promised to resume sales in naira as soon as it receives naira-priced crude allocations from the Nigerian National Petroleum Corporation (NNPC).
