By Udeme Akpan
Dangote Refinery has resumed the sale of petrol in Naira after it earlier suspended it, citing exhaustion of its crude-for-naira allocation as the reason.
The development unsettled marketers and raised fresh concerns about fuel pricing and foreign exchange pressure.
In an email sent to its customers at exactly 6:42 pm on Friday, the refinery disclosed that the decision would take effect from Sunday, September 28, 2025.
But in an email to marketers late Sunday night, the company said it was resuming the sale of fuel in Naira.
The refinery said this was due to the intervention of the naira-for-crude technical committee.
“Following the intervention of the Naira for Crude Technical Committee Chairman, we are pleased to inform you of the resumption of PMS sales in Naira commencing immediately.
“You may kindly proceed to place your orders in Naira for both self-collection and free delivery of PMS to the earlier advised locations across the country. Thank you for your continued patronage,” the memo read.
Prior to the development, there was anxiety in the country over the likely effect the suspension would have on the prices of petrol.
The depot prices of petrol had increased by more than 4.19 per cent.
Specifically, the prices rose to N870 per litre from N835 per litre.
Checks by Sunday Vanguard at some depots showed that Matrix (Calabar), Sigmund, and others had increased prices to N870 per litre from N835 per litre.
This was even as analysts said depot prices could rise to N900 per litre this week as the domestic market continues to respond to changes.
In an interview with Sunday Vanguard, the National President of the Oil and Gas Service Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said the suspension of Naira sales would impact the domestic market.
He said: “The suspension of petrol sales in Naira would have adverse effects in the markets. I hear that Dangote Refinery said it has not been able to get crude oil supplies on a sustainable basis. This is sad.”
If consultations fail, regulator can apply relevant laws — MEMAN
Similarly, the Chief Executive Officer of the Major Energy Marketers Association of Nigeria, MEMAN, Mr. Clement Isong, said:
“The Dangote Petroleum Refinery is located in a free zone, allowing it to import crude oil, produce, and export petroleum products in dollars. The refinery can also refine and deliver petroleum products locally in dollars, with only gantry sales transacted in Naira. In the past, Dangote coastal sales have been predominantly in USD, but there have been some transactions in Naira.
“In cases of disputes, all parties should be free to escalate issues for resolution through wider consultation. If such consultations fail, the sector regulator should intervene by applying relevant laws.
“I believe this matter will receive the required attention and will be resolved before it escalates further.”
Depot prices to hit N900 per litre — Analyst
On his part, the Chief Executive Officer of petroleumprice.ng, Olatide Jeremiah, said depot prices would rise to more than N900 per litre this week as the domestic market continues to respond to changes.
He said:”From all indications, the depot prices of petrol could rise to more than N900 per litre this week if the current factor or factors fueling the market situation are not resolved soon.”
Why we suspended petrol sales in Naira — Dangote Refinery
However, the refinery said the suspension of petrol sales in Naira was based on its ability to source crude locally under the Federal Government’s crude-for-naira terms.
In an email sent to its customers at 6:42 pm on Friday, the refinery disclosed that the decision would take effect from Sunday, September 28, 2025.
It said:”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.
“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.”
Crude-for-naira deal
The decision for Dangote Refinery to sell petrol in Naira to local marketers was part of a broader understanding reached with the Federal Government earlier this year.
At the time, concerns had mounted over the refinery’s initial dollar-denominated transactions, which threatened to further weaken the Naira and complicate domestic fuel pricing.
To address these concerns, the government, through the Nigerian National Petroleum Company Limited, NNPCL, negotiated an arrangement where a portion of crude oil supplied to the refinery would be allocated under a crude-for-naira swap. This was designed to ensure that Dangote could refine crude and sell a share of its output to local marketers in Naira, while the rest of its products remained available for dollar-based export.
Officials said the policy was meant to stabilise the local market, provide some relief to marketers already struggling with foreign exchange shortages, and cushion Nigerians against steep fuel price shocks. By denominating part of sales in Naira, the government hoped to reduce inflationary pressure and limit exchange rate volatility.
However, the arrangement has faced repeated challenges, largely because of inconsistent crude supply and difficulties in balancing the refinery’s export obligations with local demand. Industry experts note that the current suspension reflects the fragility of the deal and highlights the urgent need for a more sustainable framework between government and private refiners. The deal also came against the backdrop of heavy government reliance on the Dangote Refinery to meet national fuel needs after years of failed attempts to rehabilitate state-owned refineries.
By agreeing to a Naira-denominated supply line, authorities sought to position the refinery as a stabilising force in the downstream sector and to reassure the public that domestic refining would translate to cheaper, more accessible fuel.
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