Nigeria’s Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products within the domestic market.
This decision comes as renegotiations for a naira-for-crude oil deal have reportedly stalled.
The refinery cited a growing “mismatch between sales proceeds and our crude oil purchase obligations.”
In a statement issued to petroleum marketers on Wednesday, the company clarified the temporary nature of the halt.
Dangote explained that current crude oil purchases are denominated in US dollars.
Sales of petroleum products in naira have now exceeded the value of naira-denominated crude received.
The refinery emphasized the need to align their sales currency with their crude procurement currency.
They also refuted online reports of a loading halt due to ticketing fraud, labeling them as “malicious falsehood.”
Dangote affirmed the robustness of their systems and denied any fraud issues.
The company expressed its continued commitment to serving the Nigerian market efficiently and sustainably.
They stated that sales in naira will promptly resume upon receiving an allocation of naira-denominated crude cargoes from the NNPC.
Previously, the refinery sold to Nigerian marketers in naira under an agreement with the NNPC for local crude purchases.
However, reports indicate that the naira-for-crude deal with Dangote and other local refineries was discontinued around March 10th.
This development prompted Dangote’s decisive action to temporarily suspend fuel sales in the local currency.