Confirmed: Dangote Dollarized Sales of Petroleum, Shuns Nigerian Market The Dangote Petroleum Refinery announces it has temporarily halted the sale of petroleum products in naira.
The refinery publicised the decision in a statement on Wednesday.
The development comes a few hours after The Round Table reported that the refinery would stop loading petroleum products for the Nigerian market as the renegotiation of the naira-for-crude deal is not recording significant advancement.
Sources had informed the publication the refinery would remain to load for export as it currently sources all its crude oil from the international market in dollars.
In the statement, the refinery reported the decision to halt sales in naira was “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,” the statement reads.
“As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”
The refinery furthermore debunked claims that the temporary suspension was due to ticketing frauds, stating they are “malicious”.
The firm, however, assured that sales would resume in naira as soon as they receive crude supply in naira from the Nigerian National Petroleum Company (NNPC) Limited.
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“Our attention has furthermore been drawn to reveals on the internet claiming that we are stopping loading due to an incident of ticketing fraud,” Dangote refinery disclosed.
“This is the malicious falsehood. Our systems are robust and we have had no fraud issues.
“We endure 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.”
On March 10, The Round Table revealed that the NNPC had suspended the naira-for-crude deal until 2030, as the government-owned company has forward-sold all its crude oil.
However, following the report, the NNPC reported negotiations are ongoing for a new naira-for-crude deal with the refinery, as the current uniformness will expire at the end of March.
Zaach Adedeji, chairman of the naira-for-crude policy technical sub-committee, reassured that the naira-based crude oil supply arrangement with local refineries has not been discontinued.
Nigeria officially started the sale of crude oil and refined petroleum products in naira on October 1, 2024, after the federal executive council (FEC) approved a proposal by President Bola Tinubu directing the NNPC to sell crude oil to Dangote refinery and other refineries in the local currency.
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However, in November concluding year, the refinery stated the crude-for-naira initiative was faltering, as it was taking one thing with another unable to secure adequate supplies.
Category: World-News
Tag: Confirmed Dangote Dollarized Sales of Petroleum Shun Nigerian Market
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Published 3/19/2025