The Dangote Refinery and Petrochemicals has announced the suspension of the sale of Premium Motor Spirit (PMS), otherwise known as petrol in naira, effective from Sunday, September 28, 2025.
This development was contained in a Public Notice issued to the refinery’s customers on Saturday.
The refinery explained that it has been selling petroleum products in excess of its Naira-Crude allocations, consequently, could no longer sustain the products sales in naira.
It therefore, advised all customers with PMS transactions in Naira who would like a refund of their current payments to formally request the processing of their refund.
The Public Notice read thus: “We write to inform you that Dangote Petroleum Refinery & Petrochemicals has been selling petroleum products in excess of our Naira-Crude allocations and, consequently, we are unable to sustain PMS sales in Naira going forward.
“Kindly note that this suspension of Naira sales for PMS will be effective from Sunday, 28th of September, 2025.
“We will provide further updates regarding the resumption of supply once the situation has been resolved.
“All customers with PMS transactions in Naira who would like a refund of their current payments should formally request the processing of their refund.”
The sale of crude oil and refined products in Naira which officially commenced on October 1, 2024, in line with the Federal Executive Council (FEC) directive, was designed to support sustainable local refining, bolster energy security, and reduce reliance on foreign exchange in the domestic petroleum market.
However, the initiative has been battling implementation challenges with the Nigerian National Petroleum Company Limited (NNPC Ltd) and the Dangote Petroleum Refinery pulling out of the deal.
The national oil company while clarifying its position, noted that the contract for the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. It however, disclosed that discussions were ongoing towards emplacing a new contract.
In a swift reaction, the Federal Government stated that the sale of crude oil and refined products in Naira would continue for as long as it aligns with the public interest and supports the national economy.
This decision was reached in April 2025, after the Technical Sub-Committee on the Crude and Refined Product Sales in Naira initiative held its meeting in Abuja.
In May, 2025, the stakeholders reaffirmed their shared commitment to the seamless execution of the policy, which remains a critical component of President Bola Tinubu’s broader strategy to strengthen the Naira, enhance energy security, and promote local value addition within the sector.
The meeting was attended by the Executive Chairman of the Federal Inland Revenue Service and Chairman of the Technical Sub-Committee, Mr. Zacch Adedeji; the Special Adviser to the President on Energy, Ms. Olu Verheijen; as well as senior representatives of the Nigerian National Petroleum Company Limited (NNPCL), local refining operators, and key regulatory institutions including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Ports Authority (NPA).
When contacted on the latest development, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, disclosed that a meeting would be convened on Monday to decide on the next line of action.
Speaking on the implications of the decision, Maigandi said while the products supply may not be disrupted because of the refinery, the price of the products would definitely increase if there is no intervention from the federal government.
