Nigeria’s downstream oil sector is on edge following reports that Dangote Refinery may suspend the supply of petroleum products for the domestic market.
The uncertainty arises as negotiations over the naira-for-crude deal struggle to make meaningful progress. However, sources familiar with the situation confirm that the refinery will continue exporting fuel, as it currently procures all its crude from the international market in dollars.
When contacted, Dangote Group’s spokesperson, Anthony Chiejina, stated he was unaware of any plan by the 650,000-barrel-per-day refinery to halt domestic fuel supply, saying, “I am not aware.”
This development follows recent confirmation from the Nigerian National Petroleum Company Limited (NNPCL) about ongoing discussions with Dangote Refinery for a renewed naira-for-crude agreement.
The federal government initially launched the naira-for-crude arrangement with Dangote Refinery in October last year, allowing the refinery to sell fuel to Nigerian marketers in naira since it purchased crude from NNPCL in the same currency.
Over the past few months, a price war between Dangote Refinery and NNPCL has driven the cost of premium motor spirit down to as low as ₦860 per litre.
