Dangote Refinery Temporarily Suspends Petroleum Sales in Naira Amid Currency Mismatch Concerns
The Management of Dangote Petroleum Refinery has announced temporary suspension of the sales of petroleum products in Naira.
The refinery said the decision was made to avoid a mismatch between its sales proceeds and crude oil purchase obligations, which according to the refinery are currently denominated in U.S. dollars.
In a statement made available to journalists on Wednesday, the management disclosed that
the Dangote Refinery sales of petroleum products in Naira have exceeded the value of Naira-denominated crude it received.
As a result, the management said, it is necessary to temporarily adjust it sales currency to align with its crude procurement currency.
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.
The refinery also debunked reports, claiming that the refinery is stopping loading due to an incident of ticketing fraud, describing the report as malicious falsehood.
“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”, the statement added.
