JUST-IN: Dangote Refinery Halts Petrol Sales in Naira Amid Currency Mismatch

Dangote Petroleum Refinery has announced a temporary suspension of the sale of petroleum products in local currency, Naira.

The decision was shared in a notice sent to petroleum marketers on Wednesday, which quickly went viral. Signed by the management of Dangote Group, the notice stated that the suspension was necessary to prevent a “mismatch” between sales proceeds in Naira and the company’s crude oil purchase obligations, which are currently in U.S. dollars.

“We wish to inform you that Dangote Petroleum Refinery has temporarily halted 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,” the notice read.

It further explained that the refinery had sold more petroleum products in Naira than the value of Naira-denominated crude oil it had received. As a result, the refinery was compelled to adjust its sales currency to align with the currency of its crude procurement.

The notice also addressed circulating rumors about a fraud incident involving ticketing, stating that such claims were false and malicious. “Our systems are robust, and we have had no fraud issues,” the refinery assured.

Dangote Petroleum Refinery emphasized its commitment to serving the Nigerian market efficiently and promised to resume Naira sales once it receives an allocation of Naira-denominated crude cargoes from the NNPC.

“We appreciate your understanding and cooperation during this period,” the notice concluded.