Lagos: Nigeria’s Dangote Petroleum Refinery announced Wednesday the suspension of sales of petroleum products for the domestic market as renegotiation of a deal using Nigerian currency, the naira, has stalled. In a notice sent to petroleum marketers, the company said the decision is temporary.
According to Anadolu Agency, Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. The company explained that the decision is necessary to avoid a mismatch between sales proceeds and crude oil purchase obligations, which are currently denominated in US dollars. The refinery revealed that sales of petroleum products in Naira have exceeded the value of Naira-denominated crude received, prompting a temporary adjustment of sales currency to align with crude procurement.
Additionally, the refinery addressed reports on the internet claiming that loading was stopped due to an incident of ticketing fraud, labeling these claims as malicious falsehoods. The company assured that its systems are robust, and no fraud issues have been encountered.
The refinery reiterated its commitment to serving the Nigerian market efficiently and sustainably. It assured that upon receiving an allocation of Naira-denominated crude cargoes from the Nigerian National Petroleum Company (NNPC), petroleum product sales in Naira would promptly resume. Prior to this suspension, the refinery sold to Nigerian marketers in Naira under a deal with the NNPC, purchasing crude in the local currency.