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Nigeria Fuel Hike on the Cards as Dangote Shifts to Dollar Sales

Dangote Refinery has temporarily suspended the sale of petroleum products in Naira to avoid a mismatch between its Naira-denominated sales proceeds and its dollar-denominated crude oil purchase obligations, reports Premium Times. As a result of the decision, oil marketers will have to pay in dollars for products such as petrol and diesel, potentially leading to higher pump prices.

The refinery said the move was not due to fraud allegations, as reported, but rather to align sales currency with procurement currency. The company reaffirmed its commitment to the Nigerian market, and said that Naira sales will resume once it receives Naira-denominated crude allocations from the state-owned Nigerian National Petroleum Company (NNPC).

In 2024, the Nigerian government directed crude oil sales to local refineries to be conducted in Naira, with refined products sold domestically in the same currency for an initial period of six months from October, to ease supply constraints.

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