Lucky Obukohwo, Reporting
Oil marketers have rejected the Dangote Petroleum Refinery’s decision to resume the sale of petroleum products in United States dollars, warning that the move could intensify pressure on the foreign exchange market, fuel inflation, and compel dealers to source products from alternative suppliers.
Speaking with journalists, National President of Petroleum Products Retail Outlets Owners Association of Nigeria(PETROAN) Mr. Billy Gillis-Harry, said while the refinery has the right to determine its commercial model, marketers are equally free to source products from suppliers whose payment terms align with the realities of the Nigerian market.
Gillis-Harry, said the association’s members conduct their businesses in naira and cannot be expected to source scarce foreign exchange to buy petroleum products.
“As PETROAN, we are not importers and, as such, don’t have dollars because the country does not print dollars. Our legal medium of exchange in Nigeria is the naira, not the dollar.
“Our members will have to reassess where we buy products going forward because we won’t be able to continue patronage along that line,” he said.
Gillis-Harry warned that the decision could have significant implications for the downstream petroleum market, especially at a time of heightened geopolitical tensions involving Iran and the United States, which have continued to drive volatility in global crude oil prices.
He said the development underscores the urgent need for the Nigerian National Petroleum Company (NNPC) Limited to revive the country’s state-owned refineries to guarantee energy security and reduce reliance on private refiners.
“If NNPC had managed the refineries more efficiently, there would have been no reason for it to buy shares in the Dangote refinery.
“NNPC should hurry and conclude talks with the Chinese on how best to run the refineries because that would be our saving grace,” he added.
Also speaking, PETROAN’s Public Relations Officer, Dr. Joseph Obele, warned that denominating domestic petroleum transactions in dollars could further strain Nigeria’s foreign exchange market by increasing demand for scarce foreign currency, weakening the naira and worsening inflationary pressures across the economy.
According to him, higher foreign exchange costs would ultimately be passed on to consumers through increased fuel prices, transportation costs and the prices of goods and services, thereby compounding the country’s inflation challenges.
To address the situation, Obele urged the Federal Government to strengthen and expand the crude-for-naira policy to ensure domestic refineries receive sufficient crude oil to meet their production requirements.
Obele called on NNPC Limited to increase crude oil allocations to local refineries to reduce reliance on imported feedstock and sustain the sale of petroleum products in naira.
He also urged the Central Bank of Nigeria (CBN), the Federal Ministry of Petroleum Resources and other regulatory agencies to provide clear policy guidance on the appropriate currency for domestic petroleum transactions to maintain confidence in the naira.
According to him, the government should strengthen efforts to stabilise the foreign exchange market by boosting crude oil production, increasing export earnings and implementing policies that reinforce the local currency.
Obele further appealed to stakeholders across the petroleum value chain to ensure that business decisions align with Nigeria’s broader economic stability, energy security and long-term national development goals.
“While every investor deserves a fair return on investment, policies and business decisions within strategic sectors such as petroleum should carefully balance commercial realities with their wider implications for the Nigerian economy and the welfare of citizens,” Obele maintained.
