The volatility in Nigeria’s downstream oil sector has stabilized for now. The Dangote Petroleum Refinery has announced the immediate resumption of Premium Motor Spirit (PMS)—petrol—sales in Naira nationwide, following a swift intervention by the government.
The refinery communicated the positive development to its customers on Saturday, confirming that the suspension of local currency transactions has been lifted.
“Following the intervention of the Naira for Crude Technical Committee chairman, we are pleased to inform you of the resumption of PMS Sales in Naira commencing immediately.”
The quick action allows customers to immediately place orders for self-collection or free delivery across Nigeria, reinstating a critical path for naira-based fuel distribution.
Struggle for Naira-Priced Crude
The temporary halt in Naira sales stemmed from a persistent struggle to fully implement the Federal Government’s Naira-to-Crude initiative.
- The Policy: Announced in October 2024, the initiative promised to supply local refineries, including the Dangote facility, with crude oil priced in the local currency. This was meant to reduce pressure on the US Dollar and stabilize domestic fuel prices.
- The Reality: Implementation has been inconsistent. The government’s plan was to sell 450,000 barrels per day (bpd) in Naira to local refineries, with Dangote expected to receive 385,000 bpd.
- Allocations Gap: However, records show the refinery has consistently received far less. For instance, in February 2025, Dangote received only 61,290 bpd in Naira allocation, and by March 2025, a significant portion of the allocated crude had to be purchased in US Dollars. This progressive reduction in Naira-priced crude forced the refinery to temporarily demand dollar payments for its refined products.
The latest intervention by the Naira for Crude Technical Committee chairman signals a renewed push to address these allocation inconsistencies, ensuring the refinery receives enough local currency crude to sustain Naira-based transactions. This development is a major relief for the downstream sector and Nigerian consumers who rely on domestic refining for stable prices.
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