Nigeria’s mega Dangote refinery has announced plans to stop selling Premium Motor Spirit (PMS), commonly known as petrol, in the local currency, the Naira.
In a circular sent to its buyers and seen by Energy in Africa, the management of the refinery said the suspension will take effect from Sunday, September 28.
According to the circular, the refinery can no longer continue with naira sales because the allocations under the federal government’s Naira-for-Crude arrangement are no longer sufficient.
Dangote also noted that customers who had made upfront payments in naira can apply for a refund.
“We write to inform you that 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.
“Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025,” the refinery said.
The Naira-for-Crude initiative was introduced by the federal government to allow Dangote lift crude from the state-owned Nigerian National Petroleum Company Limited (NNPCL) in local currency.
The arrangement was meant to ease pressure on foreign exchange and simplify transactions.
But reports indicate that the allocations have been inconsistent, with Dangote repeatedly complaining of inadequate supply from NNPCL.
Possible petrol price increase
Moreover, the announcement from Dangote may result in hike in petrol prices in the coming days.
The result is that the buyers will have to pay in dollars which may affect the naira equivalent in terms of foreign exchange.
This will no doubt affect the retail price of the product.
Disputes with independent marketers
The development comes amid ongoing disputes with petroleum marketers and trade unions.
Recently, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused Dangote of unfair pricing, alleging an attempt to dominate the downstream sector.
The union argued that the refinery’s pricing model disrupts the replacement cost of imported petrol.
The back-and-forth between Dangote and market unions escalated when the refinery laid off some workers who had joined one of the unions.
Analysts suggest the suspension of naira sales could also be a signal to the federal government.
As one Lagos-based oil analyst put it:
“Dangote knows he’s at war with the marketers. And he is going to do anything in his power to protect himself against independent marketers.”
Labour reactions
The layoffs have sparked criticism from another union, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), which accused the refinery of replacing Nigerian workers with foreigners.
Dangote dismissed the claims, describing the move as a “reorganisation,” and emphasized that over 3,000 Nigerians are still employed at the facility.
