The Dangote Petroleum Refinery has again unsettled Nigeria’s downstream sector with its decision to halt the sale of petrol in naira, a move that has sparked intense debates among marketers, economists, and labour unions.
The announcement, made on Friday evening through an official notice to customers, is set to take effect on Sunday, September 28, 2025.
Dangote Refinery Suspends Petrol Sales in Naira Over Exhausted Allocation
According to the company, the decision to suspend transactions in naira follows the exhaustion of its crude-for-naira allocation under the existing exchange framework.
In its statement titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025,” Dangote Petroleum Refinery & Petrochemicals explained that it had been selling products far beyond the quota of crude oil allocated for local currency sales.
The refinery advised customers with ongoing naira-based transactions to formally request refunds while assuring them that updates on possible resumption of naira sales would be communicated in due course.
This is not the first time the company has taken such a decision.
In March 2025, Dangote briefly halted naira sales, citing similar limitations.
That move triggered a wave of concerns about the dollarisation of Nigeria’s fuel supply chain, which subsequently pushed pump prices dangerously close to ₦1,000 per litre.
Market Fears as Analysts Predict Petrol Price Hike
The latest suspension of naira sales has once again heightened fears of fresh volatility in the market.
Industry watchers warn that petrol prices could rise further if marketers are compelled to transact exclusively in foreign exchange.
Energy analyst and CEO of Petroleumprice.ng, Jeremiah Olatide, noted that the Dangote refinery had been instrumental in keeping petrol prices relatively stable over recent months.
He cautioned that with the suspension in place, retail pump prices might soar above ₦900 per litre, worsening the already fragile economic situation for millions of Nigerians.
For a country already grappling with inflation and foreign exchange scarcity, the development places additional pressure on government reforms aimed at stabilising the petroleum market.
Labour Dispute Deepens Crisis
The announcement that the Dangote refinery suspends petrol sales in naira comes amid a fierce labour dispute that threatens to complicate the situation further.
On Friday, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) accused the company of anti-labour practices following the alleged mass dismissal of over 800 Nigerian workers.
The union claimed that the workers were unjustly sacked for joining the association, with many replaced by expatriates.
In response, PENGASSAN vowed to resist what it described as “an unjust and insensitive corporate decision,” warning of nationwide solidarity protests if the matter is not resolved.
The refinery, considered a critical asset for Nigeria’s energy independence, is now at the centre of both economic and labour-related tensions.
Observers say that the twin challenges—currency policy shifts and labour unrest—could undermine investor confidence in the refinery’s operations and affect national energy security.
Stakeholders Call for Government Intervention
Given the strategic importance of the refinery, stakeholders have urged the federal government to step in swiftly.
Industry experts argue that the refinery’s role in supplying the bulk of Nigeria’s petrol makes its policies pivotal to price stability and energy accessibility.
A former executive of the Department of Petroleum Resources (DPR), who spoke on condition of anonymity, described the situation as “a dangerous convergence of economic and industrial crises.”
According to him, government must not only resolve the foreign exchange allocation issue but also address labour grievances to prevent disruptions that could paralyse the supply chain.
Similarly, civil society groups have urged the Oyo State Governor, Engr. Seyi Makinde, and other regional leaders to engage stakeholders and ensure that workers’ rights are respected while the public interest is protected.
Implications for Nigeria’s Fuel Market
The decision that Dangote refinery suspends petrol sales in naira highlights broader concerns about Nigeria’s dependence on foreign exchange for energy security.
With the naira under pressure and reserves strained, analysts say the refinery’s policy choices could set the tone for fuel affordability across the country.
If not urgently addressed, consumers may bear the brunt of higher pump prices, while transport and logistics costs are likely to rise, further fuelling inflation.
Labour unrest, on the other hand, could lead to disruptions in production and supply, intensifying scarcity fears.
As the Dangote refinery suspends petrol sales in naira, Nigeria faces a double-edged crisis—managing currency pressures while confronting industrial disputes.
For millions of Nigerians already burdened by high living costs, the refinery’s policies carry profound implications.
Stakeholders argue that immediate dialogue between the federal government, labour unions, and refinery management is essential to restore stability.
The coming weeks will reveal whether the refinery can strike a balance between profitability, workers’ welfare, and national interest, or whether the crisis will deepen into yet another wave of fuel scarcity and economic hardship.
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