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By: Manaoh Kikekon
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| crude oil used to illustrate the story |
In a significant development, Dangote Petroleum Refinery announced on Wednesday that it has temporarily suspended the sale of petroleum products in naira.
This decision comes shortly after Nigerian authorities reaffirmed the continuation of the naira-for-crude oil deal, raising questions about the alignment of the refinery’s operations with national policies.
In an official statement released on Wednesday, Dangote Petroleum Refinery explained the rationale behind the suspension, stating, “We have temporarily halted the sale of petroleum products in naira to prevent a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.” The refinery highlighted that its naira-denominated sales of petroleum products have already surpassed the value of the naira-denominated crude oil it has received, necessitating this adjustment.
The refinery emphasized that the suspension is a temporary measure aimed at aligning its sales currency with its crude oil procurement currency. “Once we receive an allocation of naira-denominated crude cargoes from the Nigerian National Petroleum Corporation Limited (NNPC), we will promptly resume petroleum product sales in naira,” the statement clarified.
Dangote Petroleum Refinery also reaffirmed its commitment to serving the Nigerian market efficiently and sustainably. It dismissed online reports alleging that the suspension was due to an incident of ticketing fraud, labeling such claims as false.
This move underscores the complexities of Nigeria’s petroleum sector and the challenges faced by local refineries in navigating currency dynamics and crude oil supply agreements. As stakeholders await further developments, the suspension raises broader questions about the stability of Nigeria’s fuel supply chain and the impact on consumers.