Dangote Petroleum Refinery has temporarily stopped selling petroleum products in naira. The decision, announced in a notice sent to petroleum marketers on Wednesday, was made to address issues related to the company’s crude oil purchase obligations.
The notice, obtained by EMPOWERED NEWSWIRE, explained that the company had to make this move due to a mismatch between its sales revenue and the currency used for crude oil purchases.
“We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.”
The company noted that, so far, the value of petroleum products sold in naira has exceeded the amount of naira-based crude oil it has received. Because of this imbalance, Dangote Refinery has decided to align its sales currency with the currency used for crude procurement.
In response to online reports suggesting that the company was stopping sales due to fraud in its ticketing system, Dangote Refinery denied the claims. It stated that its systems remain strong and that no fraud issues had been recorded.
“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust and we have had no fraud issues.”
Despite the temporary halt, the company reassured Nigerians that it remains committed to supplying petroleum products efficiently. It further stated that sales in naira would resume once it receives crude oil allocations from the Nigerian National Petroleum Company (NNPC).
“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira. We appreciate your understanding and cooperation during this period.”
