Dangote Refinery Stops Naira Sales, Awaits Naira Crude Supply
By Patience Ikpeme
The Dangote Petroleum Refinery has temporarily stopped the sale of its petroleum products in Naira, citing the need to align its sales processes with its crude oil purchase arrangements, which are currently conducted exclusively in United States dollars.
In a statement issued by the company, Dangote Petroleum Refinery explained that the suspension of Naira transactions is intended to prevent financial imbalances that may arise from the difference between sales revenue and crude oil procurement costs. “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 statement read.
The company disclosed that it has, to date, sold petroleum products in Naira that exceed the volume of Naira-denominated crude it has received. “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,” Dangote Petroleum Refinery noted.
This development comes amidst public concern and online speculation regarding the refinery’s sales operations. Reports circulating online had claimed that Dangote Petroleum Refinery had halted product loading due to incidents of ticketing fraud. However, the company dismissed these allegations as entirely false and misleading.
“This is malicious falsehood. Our systems are robust and we have had no fraud issues,” the company clarified, stressing the integrity of its internal operations and control mechanisms.
Despite the current adjustments, Dangote Petroleum Refinery pledged its commitment to ensuring consistent and reliable supply of petroleum products to the Nigerian market. The company assured that once it receives Naira-denominated crude oil cargoes from the Nigerian National Petroleum Company Limited (NNPC Ltd.), it will promptly reinstate sales in Naira.
“As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira,” the statement added.
The refinery, which recently commenced large-scale production and supply of refined products, plays a critical role in Nigeria’s energy sector and has been central to efforts aimed at reducing the country’s dependence on imported fuel.
While appealing for public understanding, the company expressed appreciation for the cooperation it has received so far during this transitional period in its sales operations.
