By Aisha Muhammad Magaji
The Dangote Refinery has suspended the sale of petrol in Naira, a decision that has sparked concerns among consumers and industry players over the impact on fuel affordability and the wider economy.
The refinery, which only recently commenced commercial operations, announced on Thursday that all petrol transactions will now be conducted in U.S. dollars until further notice. The move, management said, was necessitated by the foreign exchange dynamics surrounding crude oil purchases and debt servicing obligations.
Refinery Explains Shift
According to insiders, the refinery procures a significant portion of its crude feedstock in foreign currency and is also servicing international loans tied to the multi-billion-dollar project. With the Naira experiencing volatility in the foreign exchange market, refinery officials argued that continuing sales in local currency posed sustainability risks.
“Our cost structure is dollarized, from crude procurement to loan repayments. To keep operations sustainable and avoid disruptions, we have temporarily halted sales in Naira,” a source close to the refinery management explained.
Shockwaves Across Fuel Market
The suspension has sent ripples through Nigeria’s downstream oil sector. Fuel marketers, many of whom had already raised concerns over foreign exchange scarcity, warned that the decision could further worsen pump prices and limit access for smaller, Naira-dependent retailers.
An independent marketer in Lagos told reporters, “This is a serious setback. Most of us do not have access to dollars at official rates. If petrol is sold only in dollars, it means only a few big players can afford to buy, and that could lead to shortages at filling stations.”
Some Nigerians have also expressed fears that the shift may trigger fresh inflationary pressures in an economy where the cost of living has already surged to record highs. The National Bureau of Statistics (NBS) recently reported inflation at 33.4% in August 2025, with food inflation at 40%, the highest in nearly two decades.
Government, Labour React
The federal government has yet to issue a formal statement, but officials in the Ministry of Petroleum Resources confirmed that high-level talks are ongoing with Dangote Group to find a resolution.
Labour unions, however, wasted no time in voicing their disapproval. The Nigeria Labour Congress (NLC) described the move as “anti-people” and warned that it could deepen hardship for ordinary citizens.
“The refinery was commissioned as a national project meant to reduce fuel imports and stabilize prices. If sales are now restricted to dollars, what happens to the millions of Nigerians who earn and spend only in Naira?” the union queried.
Economic Analysts Weigh In
Economists say the situation reflects the broader challenges of Nigeria’s foreign exchange crisis. While the Central Bank of Nigeria (CBN) has introduced several reforms aimed at unifying exchange rates, dollar liquidity remains tight, and the Naira continues to depreciate on the parallel market.
Dr. Abiola Rasaq, a financial analyst, noted that the refinery’s decision underscores the urgent need for Nigeria to address structural weaknesses in its FX market. “The Dangote Refinery operates in a global supply chain. If the Naira cannot provide the stability they need, it’s inevitable that they’ll demand dollars. Unfortunately, this puts additional pressure on consumers,” he said.
A National Asset in Dilemma
Commissioned with great fanfare in May 2023, the Dangote Refinery was hailed as a game-changer, with its 650,000 barrels per day capacity expected to end Nigeria’s decades-long dependence on imported refined products. The refinery’s promise was to save the country billions of dollars annually in forex outflows, create jobs, and stabilize pump prices.
Now, just months into its operations, its dollar-only sales policy raises questions about whether those promises can still be realized.
PENGASSAN, the oil workers’ union, warned that the development could “erode the patriotic essence” of the refinery project. “This refinery was built in Nigeria, by a Nigerian, for Nigerians. It must not become a fortress of dollar transactions in a Naira economy,” the union said in a statement.
What Lies Ahead
Industry observers believe the government may have to step in with policy interventions to prevent a fuel supply crisis. Options being considered reportedly include dollar allocations to the refinery at official rates, a hybrid pricing system allowing partial Naira payments, or a temporary subsidy to cushion consumers.
For now, filling stations across Lagos, Abuja, and other major cities are watching developments closely, with some already adjusting pump prices in anticipation of costlier supplies.
For ordinary Nigerians, the refinery’s announcement feels like a broken promise. “We celebrated the refinery because we thought petrol would finally be affordable. Now they are asking us to pay in dollars indirectly. How is that different from importing fuel?” asked Musa Ibrahim, a taxi driver in Abuja.
As negotiations continue, one fact is clear: the Dangote Refinery, once seen as Nigeria’s silver bullet against fuel crises, is fast becoming a litmus test of how well the country can balance its economic realities with the expectations of its citizens.
