Dangote Refinery Resumes Petrol Sale in Naira Following Committee’s Intervention

The Dangote Petroleum Refinery has officially resumed the sale of petrol in naira, reversing its earlier decision to suspend transactions in the local currency. This development comes after the intervention of a special committee set up by the federal government to resolve the pricing and operational disagreements that had sparked concerns across the downstream oil sector.

The refinery, which had temporarily halted sales in naira citing operational risks, exchange rate volatility, and payment delays from fuel marketers, confirmed on Wednesday that it has resumed local currency transactions with immediate effect. The suspension had generated intense debate, with stakeholders warning that insisting on foreign currency payments for domestic supply could worsen fuel scarcity, increase pump prices, and undermine government efforts to stabilize the naira.

Following negotiations mediated by the committee, chaired by officials from the Ministry of Petroleum Resources and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the refinery agreed to resume naira-based sales under new modalities designed to minimize financial risks. The committee also engaged with fuel marketers, oil traders, and the Central Bank of Nigeria (CBN) to ensure a balanced framework that addresses the concerns of both the refinery and market operators.

According to insiders familiar with the resolution, one of the key outcomes of the negotiation was the establishment of a monitoring mechanism that ensures prompt payment for products supplied in naira. Fuel marketers will now be required to provide bank guarantees or participate in a direct settlement arrangement facilitated by the CBN to reduce the risk of delayed remittances to the refinery. This system, the committee explained, was designed to give the refinery confidence while also protecting marketers from potential disruptions.

The intervention was widely welcomed by industry players, particularly independent marketers who had raised concerns that being forced to buy petrol in dollars would price them out of the market. They argued that only major oil marketing companies would have been able to secure sufficient foreign exchange, thereby creating a monopoly and limiting competition. By resuming naira-based sales, the refinery has restored a level playing field and prevented a potential disruption in nationwide supply.

The Nigerian National Petroleum Company Limited (NNPCL), which holds a significant stake in the refinery’s operations, also played a critical role in the negotiations. NNPCL officials stressed the importance of maintaining a stable supply chain that aligns with government policies to cushion Nigerians against sharp increases in fuel prices. They highlighted that the refinery remains a strategic asset in the country’s quest to achieve energy security and reduce dependence on imported refined petroleum products.

For the federal government, ensuring that petrol continues to be sold in naira is crucial to its broader economic agenda. With inflationary pressures still high and households grappling with elevated living costs, any shift that forces pump prices upward could trigger fresh rounds of public discontent. The resumption of naira sales is therefore seen as a measure to protect consumers and stabilize market dynamics while discussions on longer-term reforms continue.

Market analysts, however, noted that while the immediate crisis has been resolved, the underlying challenges of exchange rate instability and liquidity constraints persist. They warned that unless Nigeria strengthens its foreign exchange market and improves payment systems, the refinery may face recurring difficulties in balancing its cost structures. Dangote Refinery sources its crude oil feedstock locally but benchmarks sales to international market prices, meaning that foreign exchange considerations remain central to its financial sustainability.

In Lagos and Abuja, where filling stations had begun rationing petrol in anticipation of supply disruptions, the news of resumed naira sales was met with relief. Several marketers confirmed that allocations from the refinery had resumed under the new guidelines, easing fears of prolonged scarcity. However, some industry stakeholders called for further clarity on the pricing template, especially how exchange rate fluctuations will be managed within the naira-denominated framework.

Consumer rights groups also welcomed the decision, emphasizing that Nigerians should not be subjected to fuel purchases in foreign currency when the product is produced domestically. They urged the government to enshrine policies that make naira payments non-negotiable for essential commodities, especially petroleum products.

Meanwhile, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which had earlier clashed with the refinery over labor and pricing issues, said it would continue to monitor developments to ensure that workers’ and consumers’ interests are safeguarded. The union also called on the federal government to use this episode as a lesson in proactive engagement, stressing that policy gaps must be addressed early to avoid sudden disruptions in critical sectors.

The Dangote Refinery, with a capacity of 650,000 barrels per day, is Africa’s largest single-train refinery and was commissioned as part of Nigeria’s long-standing efforts to end reliance on imported petroleum products. Its operations are seen as transformative for the country’s energy sector, with the potential to save billions of dollars in foreign exchange annually, create jobs, and stabilize domestic fuel supply.

Industry experts believe that the latest development underscores the refinery’s strategic importance and the need for continuous alignment with national economic priorities. While the refinery must operate profitably as a private entity, it also bears a significant responsibility as a national asset critical to energy stability and economic growth.

In the coming weeks, the special committee is expected to continue its engagement with stakeholders to refine the operational framework for naira-based petrol sales. The government has promised to maintain dialogue and provide supportive policies that balance the refinery’s commercial objectives with public interest.

 

As supply flows normalize and the fuel market stabilizes, Nigerians will be watching closely to see whether this compromise delivers sustained relief or if fresh disputes emerge in the future. For now, the resumption of petrol sales in naira offers a reprieve to consumers and signals a collaborative approach between the government, the refinery, and market operators in safeguarding national energy security.