Why has Dangote Refinery stopped pricing refined oil products in naira in Nigeria?

Dangote Refinery has halted naira pricing for refined petroleum products because it receives fewer naira-denominated crude cargoes compared to dollar-priced ones, exposing the company to currency risk; as a result, it issued a new pricing template quoting gasoline at $0.779 per liter, diesel at $1.087 per liter, aviation fuel at $0.942 per liter, and coastal gasoline at $1,044.62 per metric ton—all in U.S. dollars.

What was the original agreement between Dangote Refinery and the Nigerian government regarding currency pricing, and why was it significant?

The original 2024 agreement involved the state-owned Nigerian National Petroleum Co. selling crude oil to Dangote Refinery in naira, in exchange for the refinery supplying refined products priced in naira for the domestic market—a deal designed to curb domestic dollar demand and ease pressure on the naira after its 2023 peg removal; reverting to dollar pricing undermines this objective and risks renewed pressure on the local currency.

Dangote Refinery Ends Naira Pricing for Refined Oil Products in Nigeria

Jul 14, 2026

Dangote Refinery has switched to dollar pricing for refined oil products in Nigeria citing currency risks and reduced naira-denominated crude cargoes. This reversal impacts a prior government deal designed to stabilize the local currency while the refinery operates near full capacity.

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