Nigeria’s biggest privately owned refinery, the Dangote Petroleum Refinery, has officially suspended the sale of petrol in naira, sending shockwaves through the oil and gas sector and triggering concerns over rising fuel prices and deepening foreign exchange pressures.
In a statement sent to its customers on Friday, September 26, 2025, at 6:42 PM, the refinery said the decision would take effect from Sunday, September 28, citing the exhaustion of its crude-for-naira allocation as the main reason.
According to the statement from the Group Commercial Operations of Dangote Petroleum Refinery & Petrochemicals, the company has exceeded its quota for selling fuel in naira and can no longer continue under the current arrangement.
“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 (petrol) sales in Naira going forward,” the email read.
The company also asked customers who had already made naira-based transactions to formally request refunds, while promising to update them once the situation is resolved.
This is not the first time Dangote Refinery has halted naira transactions. In March 2025, the company temporarily suspended local currency sales, also blaming limited allocations under the government’s crude-for-naira programme.
That move led to widespread concern about the dollarisation of fuel sales in Nigeria. At the time, petrol prices spiked to nearly ₦1,000 per litre, putting heavy pressure on businesses and households already struggling with inflation and a weakening naira.
With this new suspension, there are growing fears that pump prices could rise again, especially if other fuel importers follow suit and insist on payment in dollars.
Fuel marketers have expressed anxiety over the announcement, warning that it could worsen supply and drive up the cost of petrol in the coming weeks. Industry experts say the decision could also place further strain on Nigeria’s already volatile foreign exchange market.
One marketer, who asked not to be named, said:
“We are concerned because if Dangote stops selling in naira, most marketers will be forced to source dollars, which are already scarce and expensive.”
The Dangote Refinery, a 650,000 barrels per day capacity plant, was seen as a game changer for Nigeria’s fuel supply chain. But with ongoing currency issues and supply limitations, its operations are increasingly coming under scrutiny.
Adding to the refinery’s woes is a growing dispute with labour unions following the alleged mass sack of over 800 Nigerian workers.
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) on Friday accused the company of anti-labour practices, saying the mass retrenchment was carried out without proper notice or negotiation.
Union leaders have threatened to take nationwide action if the sacked workers are not reinstated or adequately compensated.
“This is an unjust and insensitive corporate decision,” said a senior PENGASSAN official. “We will not fold our arms while Nigerian workers are treated like disposable items.”
The timing of the labour crisis coinciding with the fuel sales suspension has raised concerns among stakeholders that the refinery is facing deeper internal problems that could affect its long-term stability.
The Dangote Refinery is a major part of the Nigerian government’s ongoing efforts to reform the downstream petroleum sector, reduce fuel imports, and stabilise prices. Its ability to produce petrol, diesel, and jet fuel locally is meant to ease the country’s dependence on foreign supply.
But the twin crises of currency-based sales and labour unrest now pose a serious threat to these reform goals.
As Nigerians brace for possible pump price hikes, the federal government is yet to issue an official response to the Dangote announcement or the labour situation.
Meanwhile, the refinery has assured customers that further updates will be provided once the crude-for-naira issue is resolved but with no clear timeline in sight, uncertainty continues to cloud Nigeria’s fuel future.
