Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira, citing the need to align its revenue with crude oil purchase obligations, which are settled in U.S. dollars.
In a notice issued to petroleum marketers on Wednesday, the refinery explained that the decision was driven by a mismatch between its naira-based sales proceeds and the cost of crude oil, which is primarily purchased in foreign currency.
“We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. 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 noted that its sales in naira had exceeded the volume of naira-denominated crude oil it received, prompting the adjustment. However, it assured stakeholders that the suspension was temporary.
“As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” the refinery stated.
Meanwhile, Dangote Refinery dismissed online rumors suggesting that loading operations had been suspended due to ticketing fraud, describing such claims as false.
“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust, and we have had no fraud issues,” the company clarified.
