The Nigerian Federal Government has scheduled a meeting with Dangote Refinery to address concerns arising from the recent suspension of the naira-for-crude agreement. This move has implications for domestic fuel pricing.
On March 19, 2025, Dangote Refinery announced a temporary halt to fuel sales in the local naira currency. This decision stems from challenges obtaining sufficient crude oil volumes under a six-month government agreement initiated in October, which permitted the refinery to purchase crude in naira.
The refinery cited discrepancies between naira sales and dollar-denominated crude purchases as a primary reason for the suspension.
The suspension of the naira-for-crude deal has led to concerns about potential increases in petrol prices and a further weakening of the naira, as traders may seek US dollars for transactions.
The refinery’s inability to secure the agreed crude volumes has disrupted its operations, affecting domestic fuel supply and pricing stability.
In response to the unfolding situation, the Federal Government’s naira-for-crude panel is set to reconvene on Monday, March 24, to deliberate on the future of the crude supply arrangement with Dangote Refinery.
Reliable sources within the Ministries of Petroleum Resources and Finance have indicated that discussions will focus on resolving the stalemate and ensuring the continuity of fuel supply without exacerbating price volatility.
