Dangote Petroleum Refinery Suspends Petrol Sales in Naira Amid Crude Supply and FX Challenges

The Dangote Petroleum Refinery has announced it will suspend petrol sales in the Nigerian naira starting September 28, 2025, due to exhausting its crude oil allocations priced in naira under a government crude-for-naira swap agreement. This suspension forces the refinery to align its sales currency with its crude procurement currency, which is predominantly US dollars. The move has sparked concerns about rising fuel prices, with analysts warning petrol prices could exceed ₦900 per litre, potentially destabilizing Nigeria's downstream fuel sector. The refinery has instructed customers involved in ongoing naira transactions to request refunds and stated that naira sales will resume once new crude allocations in naira are secured. The suspension coincides with labor tensions, including a directive from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to halt gas and crude supplies to the refinery. This development highlights ongoing currency and supply chain challenges in Nigeria's energy sector and underscores the need for more stable foreign exchange arrangements for domestic producers.