Amid the premium motor spirit pricing uncertainty, petroleum product marketers and depot owners in Nigeria’s oil and gas industry have accused Dangote Refinery of blackmailing the Nigerian government over a naira-for-crude sales arrangement.
This occurs as the technical Sub-Committee on Domestic Sales of Crude Oil and Refined Products of the federal government did not convene on Monday to examine the outcome of the Naira-for-crude sale agreement with Dangote Refinery via the Nigerian National Petroleum Company.
This was revealed on Monday by a trustworthy source who wished to remain anonymous and was knowledgeable about the activities of the subcommittee led by Zacchi Adedeji, the executive chairman of the Federal Inland Revenue Service.
According to him, the Nigerian Midstream and Downstream Petroleum Regulatory Commission failed to submit a report on crude availability and a situation assessment, which is why the committee did not meet on Monday as scheduled.
“The meeting did not hold because NMDPRA did not submit its report assessing the situation of things,” he said.
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.
He emphasised that Dangote Refinery product sales in dollars would not affect anything or cause any disruption in costs, pointing out that petroleum products marketers and retailers had been purchasing imported Premium Motor Spirit in dollars before the Naira-for-crude deal.
He went on to say that Dangote Refinery decided to halt its Naira product sales in order to pressure the Nigerian government into signing a new Naira-for-crude agreement.
“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.
The Naira-for-crude oil transaction structure poses serious concerns that might impact Nigeria’s foreign exchange stability and discourage foreign direct investment, or FDI, according to a statement earlier made by Olufemi Adewole, executive director of DAPPMAN.
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“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 said that it would no longer be selling its products in Naira last Wednesday.
The refinery, which produces 650,000 barrels per day, clarified that it decided to cancel the agreement to “avoid a mismatch between its sales proceeds and crude purchase obligations.”
Even though Dangote Refinery hasn’t released a new petroleum products pricing template yet, when it does, it will represent its pricing strategy.
In the meantime, retailers and marketers have declared their willingness to look for alternatives to Dangote Refinery’s petroleum products if the refinery’s price is unfavourable.
According to The Intercept, the refinery in Lekki, Lagos, lowered the ex-depot price of fuel from N825 per litre to N815 just a week ago, while the Naira-for-crude agreement was still in effect.
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According to data from the Major Energies Marketers Association of Nigeria, as of March 14, 2025, the landing cost of petroleum was N797.66 per litre.
However, there has been fear of a significant increase in retail fuel prices ever since Dangote Refinery announced its intention to start selling petrol products in Dollars.
In Lagos and Abuja, Nigerians currently pay between N860 and N880 a litre for petrol from NNPC and Dangote Refinery.
Depending on the region, other independent marketers and merchants of petroleum products charge N920 to N950 per litre at filling stations.
