Dangote Refinery has officially announced that it is halting the sale of petroleum products in naira. The refinery made this announcement in a statement on Wednesday. It clarified that the suspension is temporary.

Reason for the Suspension

The decision follows reports that the Nigerian National Petroleum Company Limited (NNPCL) might have stopped selling crude to the Dangote refinery in naira. According to the refinery’s statement, this measure was necessary to prevent a mismatch between sales proceeds and crude oil purchase obligations, which are currently denominated in U.S. dollars.

Details from Dangote’s Statement

The refinery explained that its sales in naira had surpassed the value of the naira-denominated crude it had received. This discrepancy led to the need for a temporary shift in the sales currency to match the currency used for crude procurement. “We must temporarily adjust our sales currency to align with our crude procurement currency,” the statement added.

Debunking Fraud Claims

The refinery also addressed rumors circulating online, claiming that the suspension was due to an incident involving ticketing fraud. “This is a malicious falsehood,” the statement said. Dangote emphasized that their systems are secure and that no fraud issues had been encountered. The refinery reassured the public that it remains committed to serving the Nigerian market efficiently and sustainably.

Resumption of Sales in Naira

Dangote Refinery concluded by stating that it would resume sales in naira as soon as it receives an allocation of naira-denominated crude cargoes from NNPC. The statement confirmed that this temporary suspension is part of the refinery’s effort to continue operations effectively while adhering to current procurement terms.