LAGOS, Nigeria – In a move that has sent shockwaves through Nigeria’s downstream oil sector, the Dangote Petroleum Refinery has announced the immediate suspension of petrol (PMS) sales in the local currency, the naira. The decision, effective Sunday, September 28, 2025, has raised urgent concerns about a potential surge in fuel prices and increased pressure on the foreign exchange market.
Official Notice and Reason for Suspension
The refinery communicated the decision to its customers via an email sent at 6:42 pm on Friday. The notice, titled “Suspension of DPRP PMS Naira Sales – Effective 28th September 2025,” was signed by the Group Commercial Operations team.
According to the company, the suspension is a direct result of exceeding its “Naira-Crude allocations” under a government programme where it receives crude oil in exchange for naira payments. The refinery stated it is now unable to sustain petrol sales in the local currency.
“We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward,” the notice read.
The refinery has instructed customers with ongoing naira-based transactions to formally request refunds, adding that it would provide updates on when naira sales might resume.
History and Potential Market Impact
This is not the first time the refinery has taken this step. A similar suspension in March 2025 led to a significant dollarization of fuel sales, causing pump prices to escalate to nearly N1,000 per litre.
Analysts are warning of a repeat performance. Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng, cautioned that petrol prices could once again soar above N900 per litre. He noted that the Dangote Refinery had previously been instrumental in keeping prices relatively lower in recent months, making this suspension a critical blow to market stability.
Simmering Labour Crisis Adds to the Turmoil
The announcement coincides with a major labour dispute at the refinery. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has accused the company of anti-labour practices following the alleged mass termination of more than 800 Nigerian workers.
Union leaders have vowed to resist what they term an “unjust and insensitive corporate decision,” threatening nationwide solidarity actions if the sackings are not reversed. This dual crisis of naira sales suspension and industrial unrest creates a perfect storm for Africa’s largest oil-producing nation.
Broader Implications for Nigeria
As a facility seen as crucial to Nigeria’s energy security and self-sufficiency, the ongoing issues at the Dangote Refinery pose a significant challenge to the government’s reform agenda aimed at stabilizing the fuel market. Stakeholders fear that the combination of potential fuel price volatility and industrial unrest could undermine economic stability and intensify pressure on consumers and businesses.
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