Dangote Refinery Halts Naira Sales Amid Crude Supply Challenges
The Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products in naira, citing a mismatch between its sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars.
The move follows failed naira-for-crude negotiations between the $20 billion Lekki-based refinery and the Nigerian National Petroleum Company Limited (NNPCL).
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Following the announcement, the cost of loading petrol at private depots in Lagos skyrocketed to N900 per litre, up from less than N850 per litre. Industry experts warn that this suspension could intensify pressure on Nigeria’s forex market, as petroleum dealers will now require more US dollars to purchase products.
Sources reveal that NNPCL’s extensive forward sales of crude oil used as collateral for international loans have severely limited its ability to supply the domestic market, leading to crude shortages for local refiners.
Read also:Aliko Dangote Foundation(ADF) donates 80,000 bags of rice to Lagosians.
In a statement, Dangote Group assured stakeholders that the halt in naira sales is temporary and will resume once it receives naira-denominated crude allocations from NNPCL.
It also debunked rumors of ticketing fraud, labeling them false and misleading.