Petroleum products marketers and depot owners in Nigeria’s oil and gas sector have accused Dangote Refinery of blackmailing the Nigerian government over a naira-for-crude sales deal, amid the premium motor spirit price uncertainty.
This comes as the federal government’s technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products failed to meet on Monday over discussion to know the fate of the Naira-for-crude sale deal with Dangote Refinery through the Nigerian National Petroleum Company.
A reliable source familiar with the dealings of the sub-committee chaired by the executive chairman of the Federal Inland Revenue Service, Zacch Adedeji, who preferred anonymity, disclosed this to DAILY POST on Monday.
READ ALSO: Naira-for-Crude Policy Poses Risks to FDIs, Exchange Stability, DAPPMAN Cautions
He said the committee did not meet as earlier planned on Monday because the Nigerian Upstream Petroleum Regulatory Commission did not submit a report on the availability of crude and assessment of the situation.
“The meeting did not hold because NUPRC did not submit its report assessing the situation of things,”
Meanwhile, a top executive at Depot and the Petroleum Products Marketers Association of Nigeria noted that Dangote Refinery, by suspending its petroleum products sales in Naira, allegedly wants to incite the public against the Nigerian Government.
According to him, prior to the Naira-for-crude deal, petroleum products marketers and retailers have been buying imported Premium Motor Spirit in dollars, stressing that Dangote Refinery product sales in dollars will not make any difference or cost disruption.
He added that Dangote Refinery’s decision to suspend its products sales in Naira was to bully the Nigerian government into a fresh Naira-for-crude deal.
“When marketers were importing fuel under the subsidy regime, they were paying in dollars.
“If we pay Dangote Refinery for petroleum products in dollars, there won’t be any difference. Even before Dangote Refinery was given the privilege of buying crude in Naira, we were buying the petroleum product in dollars.
“What Dangote Refinery is doing is cheap blackmail. Technically, Dangote is trying to incite the people against the government.
“Dangote didn’t reduce the price of its products because he loves Nigerians, but for competitive advantages,” he stated.
Earlier in a statement, DAPPMAN’s executive director, Olufemi Adewole, said that the Naira-for-crude oil transaction framework presents significant risks that could affect Nigeria’s foreign exchange stability and deter foreign direct investment, FDI.
“The global oil market operates in U.S. dollars due to its stability. Continuing the policy could alienate trade partners and investors who rely on the predictability of the dollar,” he stated.
Recall that Dangote Refinery on Wednesday last week announced the suspension of its product sales in Naira.
The 650,000 barrels per day refinery explained that its decision to halt the deal was to “avoid a mismatch between its sales proceeds and crude purchase obligations.”
Although Dangote Refinery is yet to release a fresh petroleum products price template, it would reflect its pricing policy when announced.
Meanwhile, marketers and retailers have announced readiness to seek alternative outside Dangote Refinery’s petroleum products should the refinery’s price not be favourable.
Recall that barely a week ago, the Lekki-Lagos based refinery reduced its ex-depot price of petrol to N815 per litre from N825 as of the time the Naira-for-crude deal subsisted.
Data from the Major Energies Marketers Association of Nigeria showed that the landing cost of fuel stood at N797.66 per litre as of 14 March, 2025.
However, since Dangote Refinery went public on its decision to commence petrol product sales in Dollar, there has been panicking about an eminent retail fuel price hike.
Currently, Nigerians buy NNPC and Dangote Refinery’s fuel between N860 and N880 per litre in Lagos and Abuja.
Other independent petroleum product marketers and retailers sell the product for between N920 and N950 per litre in filling stations, depending on the location.
