Dangote Refinery’s Dollar-Only Sales to Spike Fuel Prices, Weaken Naira

The Centre for the Promotion of Private Enterprise (CPPE) has cautioned Nigerians that Dangote Refinery’s decision to halt petroleum product sales in naira will trigger a surge in fuel prices and accelerate the naira’s depreciation.

CPPE’s Chief Executive Officer, Dr. Muda Yusuf, raised the alarm in a statement on Wednesday, describing the development as a major disruption to domestic petroleum pricing. He warned that the widely celebrated drop in fuel prices could soon be reversed.

“This is a disturbing shift that will escalate pressure on the forex market, weaken the naira, and put Nigeria’s foreign reserves under strain,” CPPE stated.

Dangote Refinery’s decision follows the federal government’s naira-for-crude deal, initiated in October 2024, which allowed the refinery to sell petroleum products in naira. The Nigerian National Petroleum Company Limited (NNPCL) had earlier confirmed ongoing negotiations with Dangote for a new contract under the same arrangement.

With petrol prices already hovering between N860 and N970 per litre in Lagos and Abuja, analysts fear the new pricing model will further burden consumers and investors, intensifying Nigeria’s economic challenges.