Petroleum marketers in Nigeria have started adjusting pump prices following changes in Dangote Refinery’s sales policy.
Diaspora digital media (DDM) revealed that the refinery recently announced a temporary suspension of petroleum product sales in naira, opting instead for US dollar transactions.
This development follows the expiration of a six-month naira-for-crude agreement between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL).
The agreement, initiated in October 2024, allowed Dangote Refinery to purchase crude oil from NNPCL using the local currency.
It was designed to stabilize fuel prices and ensure a steady supply of petroleum products within Nigeria’s domestic market.
However, in March 2025, the agreement ended, leading Dangote Refinery to reconsider its sales strategy due to supply challenges.
A refinery spokesperson stated that obtaining crude in naira became difficult, prompting the decision to halt naira transactions temporarily.
This shift is expected to impact petrol prices and could further weaken the naira as traders seek US dollars for transactions.
In response, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed concerns over the policy’s impact on fuel distribution.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, warned that marketers might begin selling petrol in US dollars if Dangote Refinery insists on foreign currency transactions.
He emphasized that such a change could result in increased fuel prices and economic instability nationwide.
Despite reports of the agreement’s termination, NNPCL clarified that the contract was initially a six-month deal, subject to review.
Since October 2024, NNPCL has supplied Dangote Refinery with over 48 million barrels of crude oil under this arrangement.
The company is currently in discussions with Dangote Refinery to explore the possibility of renewing the agreement or establishing new terms.
The evolving situation highlights the complexities of Nigeria’s oil sector, affecting fuel supply, pricing, and economic stability.
Consumers are advised to stay informed about potential fluctuations in fuel prices and availability.
The outcome of ongoing negotiations and policy adjustments will significantly influence Nigeria’s petroleum industry in the coming months.
