Dangote Refinery Halts Petrol Sales in Naira Over Crude Supply Issues

The Dangote Refinery has announced it will suspend petrol sales in naira beginning September
28, 2025, citing crude oil supply constraints. Instead, all transactions will now be conducted in
U.S. dollars, a decision that has stirred debate about its impact on Nigeria’s fragile economy.
According to reports, the refinery has struggled to secure steady crude oil supplies under naira-
based agreements. Shifting to dollar transactions, management says, will help ensure operational
stability and keep production running amid tightening supply conditions.

Industry experts view the move as a pragmatic step for the refinery, which is still in its early
stages. However, the broader economic consequences are already raising concern, particularly
for the government’s efforts to stabilize the local currency.
The decision effectively increases demand for dollars in Nigeria’s already strained foreign
exchange market, putting more pressure on the naira. Analysts warn that the policy shift could
lead to higher petrol prices, as marketers and distributors factor in the cost of sourcing foreign
currency.

For ordinary Nigerians, who are already grappling with rising inflation and a high cost of living,
the refinery’s dollar-only sales may further tighten household budgets. The move also
complicates government policies aimed at boosting confidence in the naira.
Economists say the development underscores Nigeria’s ongoing struggle to reconcile ambitious
industrial projects with macroeconomic realities. “It’s a reflection of the bigger issue: without
stable crude supply and currency support, even projects of this scale face operational hurdles,”
one analyst explained.

The Central Bank of Nigeria (CBN) is yet to comment on the implications, but stakeholders are
urging for coordinated policy interventions to prevent the refinery’s decision from triggering
wider economic disruptions.

By Oyinkansola Shittu.

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