Dangote Petroleum Refinery has announced a temporary suspension of petroleum product sales in naira, citing the need to align its revenue with crude oil purchase obligations, which are settled in U.S. dollars.
In a notice issued to petroleum marketers on Wednesday, the refinery clarified that the decision was necessary due to a disparity between its sales proceeds in naira and the cost of crude oil purchased in foreign currency.
“We wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars,” the statement read.
The company explained that its sales in naira had exceeded the volume of naira-denominated crude oil received, prompting the adjustment in transaction currency. However, it assured that the measure was only temporary.
“As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” the refinery stated.
Additionally, Dangote Refinery addressed rumors circulating online, dismissing claims that loading had been suspended due to ticketing fraud.
“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust, and we have had no fraud issues,” the company clarified.
