Marketers, Depot Owners Accuse Dangote Refinery of Blackmail Over Naira-for-Crude Deal

Petroleum product marketers and depot owners in Nigeria’s oil and gas sector have accused Dangote Refinery of attempting to blackmail the Nigerian government over the Naira-for-crude sales deal amid rising concerns about fuel prices.

This comes as the federal government’s technical sub-committee on domestic crude sales failed to convene on Monday to determine the fate of the agreement between Dangote Refinery and the Nigerian National Petroleum Company (NNPC). A source familiar with the sub-committee, chaired by Federal Inland Revenue Service (FIRS) executive chairman Zacchi Adedeji, revealed that the meeting did not hold as scheduled because the Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA) failed to submit a report on crude availability and market conditions.

A senior official of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) alleged that Dangote Refinery’s decision to halt product sales in Naira was a deliberate move to stir public dissatisfaction against the government. According to him, before the Naira-for-crude deal, petroleum product marketers had always purchased imported Premium Motor Spirit (PMS) in dollars, meaning that Dangote Refinery’s decision to sell in dollars should not cause market disruptions. He further claimed that the refinery was attempting to pressure the government into renegotiating a new Naira-for-crude arrangement.

“When marketers were importing fuel under the subsidy regime, they paid in dollars. If we pay Dangote Refinery in dollars for petroleum products, it won’t make any difference. Even before Dangote was allowed to buy crude in Naira, we were purchasing fuel in dollars. What Dangote Refinery is doing is nothing but blackmail. This is a calculated attempt to turn the public against the government. Dangote did not lower the price of its products out of goodwill but for competitive advantage,” he said.

In an earlier statement, DAPPMAN Executive Director Olufemi Adewole warned that the Naira-for-crude policy posed significant economic risks, including potential instability in Nigeria’s foreign exchange market and reduced foreign direct investment (FDI). He stressed that the global oil market operates in U.S. dollars, and any deviation from this standard could alienate trade partners and international investors.

Dangote Refinery, which has a 650,000 barrels per day processing capacity, announced last week that it was suspending sales in Naira to avoid discrepancies between its revenue and crude procurement obligations. Although the refinery has not yet released a new pricing template, marketers are preparing to explore alternative sources if its prices are unfavorable.

As of last week, Dangote Refinery reduced its ex-depot price of petrol from N825 to N815 per litre while the Naira-for-crude deal was still in effect. Meanwhile, data from the Major Energy Marketers Association of Nigeria (MEMAN) showed that as of March 14, 2025, the landing cost of petrol stood at N797.66 per litre.

Since Dangote Refinery declared its intention to conduct transactions in dollars, there has been widespread concern about a possible increase in fuel prices. Currently, petrol from NNPC and Dangote Refinery is being sold at N860 to N880 per litre in Lagos and Abuja, while independent marketers charge between N920 and N950 per litre, depending on the location.