The Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products in naira due to challenges in obtaining sufficient crude oil volumes under the naira-for-crude agreement with the Nigerian National Petroleum Company Limited (NNPCL). This decision aims to address the mismatch between sales proceeds in naira and crude oil purchase obligations denominated in U.S. dollars.

The naira-for-crude policy, initiated in October 2024, allowed the Dangote Refinery to purchase crude oil from NNPCL using the local currency, thereby stabilizing domestic fuel prices and reducing reliance on foreign exchange. However, NNPCL has faced difficulties in supplying the agreed crude volumes, partly due to pre-existing commitments to foreign creditors and other operational challenges.

In response to the suspension, the Federal Government has scheduled a meeting to review the naira-for-crude policy and explore solutions to ensure a stable supply of petroleum products in the domestic market. Stakeholders have expressed concerns that this development could lead to increased fuel prices and further pressure on the naira, as traders may seek U.S. dollars to meet import requirements.

The outcome of the upcoming discussions between the Federal Government, NNPCL, and the Dangote Refinery will be crucial in determining the future of the naira-for-crude policy and its impact on Nigeria's fuel supply and pricing.