The Dangote Petroleum Refinery on Friday announced the suspension of petrol sales in naira, a move that has unsettled Nigerian petroleum marketers and heightened concerns about rising fuel prices and foreign exchange pressure.
In a notice sent to customers at 6:42 pm, the refinery disclosed that the suspension would take effect from Sunday, September 28, 2025, citing the exhaustion of its crude-for-naira allocation. The company asked customers with ongoing transactions in naira to request refunds.
“We have 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 statement read.
This is the second time in 2025 that the refinery has halted local currency transactions. A similar decision in March pushed pump prices close to N1,000 per litre, sparking concerns over the dollarisation of fuel sales and could again trigger volatility in the downstream sector, with prices projected to rise above N900 per litre if dollar transactions dominate.
The suspension comes amid an industrial crisis at the refinery. The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has accused the company of sacking 800 Nigerian workers who joined the union.
General Secretary of PENGASSAN, Lumumba Okugbawa, alleged that the workers were dismissed shortly after completing their unionisation process. “The next thing we saw was a letter firing all Nigerian staff. Meanwhile, over 2,000 expatriates from India were retained,” he said.
Although management has denied the allegations, insisting that only a few workers were affected in what it described as an ongoing reorganisation. A statement from the company said the exercise was aimed at addressing “repeated acts of sabotage” that had raised safety concerns at the facility.
A letter that surfaced online on Thursday, titled Reorganisation, appeared to announce a sweeping termination of staff contracts, but the refinery said it had been misinterpreted. “This exercise is not arbitrary,” the company stated. “It has become necessary to safeguard the refinery from repeated acts of sabotage.”
The refinery, regarded as a cornerstone of Nigeria’s energy security, is now facing simultaneous challenges of pricing uncertainty and labour unrest. Industry analysts say the outcome could affect ongoing reforms in the petroleum sector.
"The Dangote Refinery has been instrumental in stabilising fuel prices. If the suspension of naira sales coincides with prolonged labour unrest, the impact on supply and pricing could be significant,” one analyst said
PENGASSAN has threatened to picket the refinery and mobilise nationwide solidarity actions if the dispute is not resolved, raising fears of further disruptions in the country’s fragile downstream market. (Business Insider Africa, but headline rejigged)
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