Dangote Refinery has temporarily suspended the sale of petroleum products in Naira to the domestic market, citing a disagreement with the Federal Government over crude oil supply arrangements.

The company’s decision follows the expiration of a “crude for Naira” deal with NNPC Limited, which allowed Dangote Refinery to purchase crude oil in Naira.

According to a statement by the refinery, the suspension is necessary to avoid a currency mismatch between sales proceeds and crude oil purchase obligations, which are denominated in US dollars. The company has assured customers that it will resume sales in Naira once it receives an allocation of Naira-denominated crude cargoes from NNPC.

The statement reads: “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.

“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”.