Business & Economy

Dangote Refinery Halts Petrol Sales in Naira

The Dangote Petroleum Refinery has announced the suspension of petrol sales in naira, a move that unsettled marketers on Friday and reignited concerns over rising fuel prices and pressure on Nigeria’s foreign exchange market.

In a notice sent to customers at 6:42 p.m. on Friday, September 26, the refinery said the suspension would take effect from Sunday, September 28, 2025, citing the exhaustion of its crude-for-naira allocation as the reason.

The memo, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals and titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025”, directed customers with ongoing naira-based transactions to request refunds.

“We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward,” the notice read.

“Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved. All customers with PMS transactions in Naira who would like a refund of their current payments should formally request the processing of their refund.”

This marks the second time in 2025 the refinery is halting naira transactions. In March, Dangote briefly suspended naira sales, arguing that allocations under the crude-for-naira programme were insufficient to meet surging domestic demand. That decision sent pump prices soaring close to ₦1,000 per litre and fueled debates about the dollarisation of Nigeria’s downstream sector.

Industry experts are already warning of fresh turbulence. Jeremiah Olatide, CEO of Petroleumprice.ng, said petrol prices could rise above ₦900 per litre if sales are shifted predominantly to the dollar. He noted that the refinery had been pivotal in moderating retail prices in recent months.

The development comes at a time of mounting industrial tension within the company. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Friday accused the refinery of anti-labour practices after the alleged termination of over 800 Nigerian workers.

Union leaders have vowed resistance, describing the mass sack as “unjust and insensitive,” and threatened nationwide solidarity actions unless the matter is addressed.

Analysts fear the dual crises—suspension of naira sales and labour unrest—could undermine government efforts to stabilise Nigeria’s fuel market under ongoing reform policies. With the Dangote Refinery regarded as central to the country’s energy security, stakeholders warn that the latest shocks may further destabilise the downstream sector and intensify hardship for consumers.

Mike Ojo

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