Dangote Petroleum Refinery has announced a temporary suspension of petroleum product sales in Naira, effective March 19, 2025. This decision stems from a misalignment between its sales proceeds in Naira and crude oil procurement obligations, which are denominated in U.S. dollars. The company stated that its Naira sales have surpassed the value of Naira-denominated crude received, necessitating this adjustment to align sales currency with procurement currency. 

This suspension may lead to increased petrol prices and a weakened Naira, as local fuel traders might need to source U.S. dollars for transactions. The refinery has faced challenges in securing sufficient crude volumes under a six-month government agreement, initiated in October, allowing payment in Naira. Despite efforts to reduce petrol prices and halt gasoline imports, Dangote has not received the agreed crude volumes under this arrangement. 

The Nigerian National Petroleum Corporation (NNPC) is currently in discussions to potentially renew the deal. The Dangote refinery, developed by billionaire Aliko Dangote, is pivotal to Nigeria’s goal of ending petrol imports and achieving energy independence. 

The refinery has assured that it will resume petroleum product sales in Naira once it receives an allocation of Naira-denominated crude cargoes from the NNPC.