Dangote Petroleum Refinery has stopped selling refined petroleum products in naira and switched to dollar-denominated pricing, ending nearly two years of local-currency sales introduced under Nigeria’s naira-for-crude arrangement.
The new pricing, which took effect Monday, fixed petrol at $0.779 per litre at the gantry, diesel at $1.087 per litre, and aviation fuel at $0.942 per litre, while coastal petrol supplies were set at $1,044.62 per metric tonne. The refinery notified marketers that all previously issued naira-denominated invoices and deal recaps were now invalid and that payments must be made under the new dollar structure. The change does not apply to liquefied petroleum gas, which continues to be sold under the existing framework.
Industry sources said the shift stems from a widening currency mismatch in the refinery’s operations: Dangote has been receiving a growing share of its crude oil from the Nigerian National Petroleum Company Limited under dollar-denominated agreements, while continuing to sell a large volume of refined products in naira. That imbalance, combined with naira volatility and swings in international crude prices, left the refinery increasingly exposed to exchange-rate risk, sources said.
The move effectively marks the unwinding of the naira-for-crude policy launched in October 2024, which had been designed to let local refiners buy Nigerian crude in naira to conserve foreign exchange and stabilize domestic fuel prices. Analysts warned the switch could push pump prices higher and increase demand for dollars in Nigeria’s foreign exchange market, since marketers must now source dollars to buy products before converting costs back into naira for retail distribution. Economists cautioned it remains too early to gauge the full impact, saying it will depend heavily on how the naira performs against the dollar in the weeks ahead.
