Marketers Fret As Dangote Refinery Suspends Naira Transactions
The Dangote Petrochemical and Refining Company has suspended the sale of petrol in naira, a move that has unsettled downstream operators and raised concerns about possible fuel price hikes and further pressure on Nigeria’s fragile foreign exchange market.
In a notice to customers dispatched on Friday, the refinery announced that the suspension would take effect from Sunday, September 28, 2025.
The decision, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, was attributed to the exhaustion of the company’s crude-for-naira allocation.
The internal circular, titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025”, directed customers with ongoing naira-denominated transactions to request refunds, stressing that sales in local currency could no longer be sustained.
“We have 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 statement read.
“This suspension will be effective from Sunday, 28th of September, 2025. Further updates on the resumption of supply will be provided once the situation has been resolved.”
The announcement has rattled petrol marketers who fear that the development could accelerate the dollarisation of fuel sales in Nigeria, with knock-on effects on pump prices. Already, some industry analysts are projecting a sharp rise in petrol prices if transactions shift largely to dollars.
An energy analyst, Jeremiah Olatide, reacting to the development warned that the retail cost of petrol could exceed ₦900 per litre.
He noted that the Dangote Refinery had in recent months helped stabilise pump prices below ₦850, cushioning consumers against volatile global crude prices.
This is not the first time the facility has halted naira-based transactions. In March 2025, the refinery briefly suspended local currency sales, citing inadequate allocations under the crude-for-naira programme. That move pushed pump prices to nearly ₦1,000 per litre before the government intervened.
The latest suspension comes amid heightened industrial tensions within the company. Labour unions have accused the refinery of anti-worker practices following the alleged sack of more than 800 Nigerian employees.
On Friday, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) described the layoffs as “unjust and insensitive,” warning of nationwide solidarity actions if the management failed to reverse the decision.
The refinery, Africa’s largest single-train facility, has faced growing scrutiny in recent months as it navigates operational challenges, labour disputes, and market pressure. Analysts warn that the dual crises of forex scarcity and industrial unrest could complicate Nigeria’s efforts to stabilise its downstream sector and maintain affordable fuel prices.
Marketers Fret As Dangote Refinery Suspends Naira Transactions is first published on The Whistler Newspaper
