Dangote Refinery switches petrol sales to US dollars

Dangote Refinery, Nigeria's largest refinery, has shifted its petrol sales from the Nigerian naira to the US dollar, effectively ending naira-denominated transactions for fuel purchases. The move, announced in early 2025, directly impacts fuel pricing and the downstream petroleum sector in Nigeria. The refinery, owned by billionaire Aliko Dangote, began operations in 2024 and was expected to reduce Nigeria's reliance on imported fuel. This change comes amid ongoing foreign exchange shortages and a weakening naira, which has lost significant value against the dollar. The decision is likely to increase fuel costs for consumers and businesses, as the naira's depreciation makes dollar-denominated purchases more expensive. No official statement from the Nigerian government or the central bank has been issued yet regarding this development.

Global Impact

Economically, this move deepens Nigeria's dollar dependency, worsening its foreign exchange crisis and potentially triggering a new wave of naira devaluation. Politically, it pressures the central bank and government to address structural forex shortages or risk social unrest from higher fuel prices.