Dangote Refinery Suspends Petrol Sales in Naira

The Dangote Petroleum Refinery has announced the suspension of petrol sales in naira, a move that has unsettled downstream oil marketers and raised concerns about possible fuel price volatility across Nigeria.

In an email sent to customers at exactly 6:42 p.m. on Friday, the refinery disclosed that the decision would take effect from Sunday, September 28, 2025. The notice, signed by the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, explained that the suspension became necessary after exhausting its crude-for-naira allocation under the existing domestic supply programme.

The statement titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025” read in part:

“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 will be effective from Sunday, 28th September 2025. We will provide further updates regarding the resumption of supply once the situation has been resolved.”

The company also asked customers with ongoing naira-based transactions to formally request refunds for payments already made.

Concerns Over Dollarization and Price Surge

This announcement is already fueling fears of a potential shift toward full dollarisation of petrol transactions, a development analysts warn could push pump prices sharply higher. The refinery had in March 2025 briefly halted naira sales for similar reasons, a move that drove petrol prices close to ₦1,000 per litre and sparked intense debate about the affordability of fuel under Nigeria’s deregulated market.

The Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, expressed worry that the latest decision could lead to a fresh round of price hikes. According to him, Dangote’s local naira-based transactions have been a stabilising force in recent months, preventing retail prices from rising even further despite foreign exchange pressures.

“Without a naira window, marketers will have to source dollars at parallel market rates, which will immediately reflect at the pump,” Olatide warned, predicting petrol prices could rise above ₦900 per litre if the situation persists.

Industry experts say the move will also pile pressure on the naira, which has faced renewed depreciation in recent weeks, and could complicate the Federal Government’s efforts to keep fuel affordable for consumers under its current reform agenda.

Labour Crisis Adds to Industry Tension

The suspension of naira sales comes amid a bitter labour dispute at the refinery. Earlier this week, labour unions accused the company of terminating the employment of more than 800 Nigerian workers, a development that has triggered outrage among union leaders and civil society groups.

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Friday accused the refinery of engaging in “anti-labour practices” and vowed to resist what it described as “an unjust and insensitive corporate decision.” Union representatives have threatened nationwide solidarity actions if the management fails to reinstate the affected workers or engage in dialogue.

Stakeholders fear that the combined effect of the naira sales suspension and the labour crisis could undermine Nigeria’s energy security. The refinery is widely regarded as a cornerstone of the nation’s fuel supply chain, and any prolonged disruption could cause ripple effects across the downstream sector.

Government officials are yet to issue a formal response, but industry watchers expect the development to prompt urgent discussions between the Federal Government, the refinery’s management, and oil marketers to avert fresh scarcity or further price spikes.

With the refinery being a critical player in Nigeria’s energy reform strategy, attention is now firmly fixed on whether Dangote will resume naira-based sales in the coming weeks, or whether the country must brace for another round of higher pump prices.