The Dangote Refinery has suspended the sale of petroleum products to domestic market in Naira following the failure of the Federal Government to renew the crude-for-Naira deal the company had with Nigerian National Petroleum Company Limited (NNPCL)
The refinery, in a statement yesterday, said: “Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.
“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.
“Our attention has also been drawn to reports on the internet claiming that we are stopping loading due to an incident of ticketing fraud. This is malicious falsehood. Our systems are robust and we have had no fraud issues.
“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of Naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in Naira.
“We appreciate your understanding and cooperation during this period”.
- Bournemouth Humiliate Manchester United 3-0 at Old Trafford as Carrick Faces Mounting Pressure
Bournemouth delivered another painful blow to Manchester United on Sunday,… - Tragedy in Kogi: Police Corporal Allegedly Kills Female Colleague, Takes Own Life After Reported Relationship Crisis
A tragic shooting incident involving two serving police officers has…
The President of the Dangote Group, Alh. Aliko Dangote, met the Minister of Finance and Coordinating Minister of the Economy, Mr.Wale Edun, in Abuja on Tuesday, in what was seen as the last minute attempt to sustain the Naira for Crude deal to no avail.
When the media last week reported that the Federal Government, through the NNPCL, had stopped the Naira for Crude deal, the government denied.
But going by the current position of the Dangote Refinery, it is obvious that the arrangement has been shot down.
Its implication would be far reaching in escalating products prices and exacerbating the challenges of obtaining the US Dollars at the foreign exchange market.
It would worsen the dollarisation of the Nigerian economy, an aberration which the federal government said it was fighting, at a point.
