Dangote refinery says it will suspend fuel sales in local currency

The Dangote Refinery was commissioned in May 2023.

|Published 4:15 PM ET, Wednesday March 19, 2025|

Lagos: Nigeria’s Dangote Petroleum Refinery has announced a temporary suspension of fuel sales in the local currency, the naira. This decision aims to address the discrepancy between sales proceeds in naira and crude oil procurement obligations, which are currently denominated in U.S. dollars.

The refinery stated that its sales of petroleum products in naira have exceeded the value of naira-denominated crude received, necessitating an adjustment in sales currency to align with its crude procurement currency. ​

This move could lead to increased petrol prices and a weakened naira, as local fuel traders may need to acquire U.S. dollars for transactions. The refinery has faced challenges in securing sufficient crude volumes under a six-month agreement with the Nigerian National Petroleum Corporation (NNPC) that allowed payment in naira, which began in October. Discussions are ongoing to potentially renew this agreement. ​

The Dangote Refinery, developed by billionaire Aliko Dangote, is integral to Nigeria’s strategy to end petrol imports and achieve energy independence. However, the current suspension underscores the complexities of balancing local currency transactions with international procurement obligations.