Dangote Refinery has decided to cease selling petroleum products in naira following the breakdown of negotiations with the Nigerian National Petroleum
Dangote Refinery has decided to cease selling petroleum products in naira following the breakdown of negotiations with the Nigerian National Petroleum Company Limited, NNPCL, over a crude oil supply agreement.
This move signals that the refinery will not be supplying petroleum products to the Nigerian market, as it currently procures crude oil in dollars from the international market. Without a viable naira-based crude supply arrangement, the company has opted to align its pricing model with global market standards.
The refinery’s management disclosed this decision in a statement released on Wednesday, highlighting the challenges of securing crude oil domestically under favourable terms.
“We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira,” Dangote Refinery management said.
“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.
“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 refinery also dismissed allegations that it had halted loading operations due to a ticketing fraud incident, describing the claim as baseless and deliberately misleading.
“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,” the refinery said.
“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.”
