Dangote Refinery has temporarily suspended Naira-denominated sales of petroleum products to align its revenue stream with its dollar-based crude oil purchase obligations, reports Premium Times. As a result, oil marketers will now have to pay in dollars for products like petrol and diesel, potentially leading to higher pump prices.
The refinery clarified that this move was not due to any fraud allegations, as previously reported, but rather a strategic decision to match its sales currency with its procurement currency. The company reaffirmed its commitment to the Nigerian market and stated that Naira sales will resume once it receives Naira-denominated crude allocations from the state-owned Nigerian National Petroleum Company (NNPC).
In 2024, the Nigerian government had directed local refineries to conduct crude oil sales in Naira, with refined products also sold domestically in the same currency for an initial period of six months from October, in an effort to ease supply constraints.
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