The Dangote Petroleum Refinery has suspended the sale of petrol in naira, a decision that is sending shockwaves through Nigeria’s downstream oil sector and stirring renewed anxiety over possible price increases at the pump.
In a notice circulated to marketers at 6:42 p.m. on Friday, the company announced that the suspension would take effect from Sunday, September 28, 2025, citing the depletion of its crude-for-naira allocation. The message, titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025,” was signed by the Group Commercial Operations unit of Dangote Petroleum Refinery & Petrochemicals.
According to the refinery, its domestic petrol sales have already exceeded the volume allowed under its naira-crude supply arrangement, making it unsustainable to continue accepting the local currency.
“Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward,” the statement read in part.
The company advised customers with ongoing naira transactions to formally request refunds, promising to communicate new supply terms once the situation stabilises.
Foreign Exchange Pressure and Price Volatility Loom
Industry analysts say the decision could intensify pressure on Nigeria’s foreign exchange market and potentially push retail fuel prices higher. If petrol transactions shift predominantly to dollars, marketers may have to adjust pump prices to reflect parallel market rates.
Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng, warned that petrol could sell for above ₦900 per litre, reversing recent price stability attributed largely to Dangote’s local supply.
“This refinery has played a key role in moderating prices in recent months. Suspending naira transactions could trigger another round of volatility, especially if marketers are forced back to forex-denominated purchases,” Olatide said.
This is the second time Dangote Refinery is halting local currency sales. In March 2025, a similar pause led to a surge in pump prices, with petrol briefly touching ₦1,000 per litre in some parts of the country.
Labour Dispute Deepens
The timing of the latest announcement coincides with growing unrest within the refinery’s workforce. Labour unions on Friday accused the company of laying off more than 800 Nigerian employees, describing the action as “anti-labour and insensitive.”
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) condemned the sackings and vowed to resist the move through nationwide solidarity actions unless management reverses its decision.
Union leaders have also called for urgent government intervention to address both the job cuts and the broader economic implications of the naira sales suspension.
Wider Economic Implications
The Dangote Refinery, located in Lekki, Lagos, is Nigeria’s single largest domestic source of refined petroleum products. Its operations have been critical in reducing the country’s reliance on fuel imports and stabilising prices since partial operations began.
The suspension of naira sales is expected to ripple through supply chains, potentially affecting transportation costs, inflation, and foreign exchange liquidity. With the local currency under persistent pressure, marketers may increasingly rely on the parallel market to source dollars for transactions, worsening the FX crisis.
