The Dangote Refinery has announced that it is suspending sales of petroleum products in naira to avoid a mismatch between sales proceeds and crude oil purchase obligations, which are currently denominated in dollars.
“Dear Valued Customers, 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 company said in a statement signed by its management on Wednesday.
“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.
“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.
“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira.
“We appreciate your understanding and cooperation during this period.”
Recall that the NNPC recently halted the sale of crude to Dangote Refinery and other local players in naira, noting that the existing contract had expired whilst new one was being negotiated.
Dangote currently relies heavily on imported crude.
