Petroleum marketers in Nigeria may be left with no choice but to sell fuel in dollars if the federal government and local refineries, including Dangote Petroleum Refinery, fail to resolve the ongoing Naira-for-Crude dispute, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The warning follows Dangote Refinery’s recent decision to halt the sale of petroleum products in naira, opting instead for transactions in U.S. dollars. The refinery’s move came after the expiration of an initial Naira-for-Crude arrangement with the government.
Speaking in an interview with Nairametrics, IPMAN’s National Publicity Secretary, Chinedu Ukadike, expressed shock over Dangote’s announcement, warning that it could increase pump prices and further strain Nigeria’s foreign exchange market.
“I was surprised by Dangote’s announcement. I thought the Naira-for-Crude issue had been settled between the federal government and Dangote,” he said.
Ukadike emphasized that if local refineries continue to demand payment in dollars, petroleum marketers may have no choice but to adjust pump prices to reflect the exchange rate fluctuations. This, in turn, could exacerbate economic hardship for Nigerians, who are already struggling with high inflation and fuel costs.
The ongoing dispute highlights Nigeria’s dependence on foreign currency for critical sectors and raises concerns about fuel affordability if marketers shift towards dollar-based pricing.
