DANGOTE DROPS NAIRA, BEGINS PETROL SALES IN DOLLARS

The Dangote Petroleum Refinery has announced that it will begin selling petrol in US dollars, effectively ditching the naira for transactions at its facility.

The refinery’s Group Managing Director, Mr. Devakumar Edwin, confirmed the development on Friday in a statement, citing the need to align with international market practices and protect the company from foreign exchange volatility.

“Due to the challenges in sourcing foreign exchange through the official window and to ensure sustainability of operations, we have decided to sell our products in dollars. This will allow us to maintain stable supply and pricing,” Edwin stated.

The decision has sparked mixed reactions from stakeholders. While some analysts see it as a pragmatic response to the persistent foreign exchange crisis, others have criticised it as a further dollarisation of the Nigerian economy and a setback for the naira.

Marketers and consumers have expressed concerns over the potential impact on pump prices and the cost of living. The Independent Petroleum Marketers Association of Nigeria (IPMAN) called for urgent government intervention to address the foreign exchange challenges faced by local refiners.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said it is monitoring the situation and will engage with the refinery to ensure compliance with local regulations. The authority assured the public that it will not allow any action that will unduly burden consumers.

The Dangote Refinery, which has a capacity of 650,000 barrels per day, has been a major player in Nigeria’s quest for self-sufficiency in petroleum products. The decision to sell in dollars is the latest in a series of moves by large corporations to hedge against naira depreciation and forex scarcity.

Economic experts have warned that the increasing use of the dollar in domestic transactions could further weaken the naira and complicate monetary policy. The Central Bank of Nigeria is yet to issue an official reaction to the development.