See more as Dangote halts Nigerian currency petrol sales

• Dangote Petroleum Refinery has temporarily suspended the merchantability of petroleum products successful naira,
• The absorption of the refinery is not blessed that the statement with the NNPC constricted is unfavourable
• The determination is expected to substance accrued request for the US dollar, perchance weakening the naira further

Legit.ng journalist Dave Ibemere has implicit a decennary of concern journalism acquisition with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.

Dangote Petroleum Refinery has announced a impermanent halt successful the merchantability of petroleum products successful naira.

The refinery said its determination is owed to an imbalance betwixt its income proceeds and crude lipid acquisition obligations denominated successful dollars.

Dangote stopped the merchantability of petrol successful naira aft an impasse with NNPC Photo credit: Dangote refinery
Source: Facebook

BusinessDay reports that the refinery, susceptible of refining 650,000 barrels per day, has faced challenges accessing crude lipid from section producers, chiefly owed to the Nigerian National Petroleum Company (NNPC) Limited failing to fulfil its portion of the crude lipid swap agreement.

Dangote suspends section merchantability of petrol

In a connection titled ‘temporary suspension of income of petroleum products successful naira,’ Dangote Petroleum Refinery clarified that the determination was indispensable to align its income currency with the crude procurement currency.

The absorption emphasised that the impermanent accommodation is aimed astatine addressing the disparity wherever income successful naira person exceeded the worth of naira-denominated crude received.

Part of the connection reads:

"We privation to pass you that, Dangote Petroleum Refinery has temporarily halted the merchantability of petroleum products successful Naira. This determination is indispensable to debar a mismatch betwixt our income proceeds and our crude lipid acquisition obligations, which are presently denominated successful U.S. dollars."To date, our income of petroleum products successful naira person exceeded the worth of Naira-denominated crude we person received. As a result, we indispensable temporarily set our income currency to align with our crude procurement currency."

Responding to rumours circulating online regarding ticketing fraud, the refinery categorically dismissed these claims arsenic ‘malicious falsehood,’ reaffirming the integrity of its operational systems.

Naira to look unit aft Dangote refinery halt petrol income successful naira Photo credit: Bloomberg/contributor
Source: Getty Images

Naira to beryllium impacted by Dangote decision

Market analysts expect the announcement to trigger a unreserved for dollars among petroleum marketers and stakeholders, anticipating accrued transactions successful US dollars for purchasing products.

They judge that the displacement towards sourcing crude successful dollars could perchance is expected to substance a surge successful request for the US dollar successful Nigeria’s overseas speech market.

Recent information from the Central Bank of Nigeria (CBN) revealed a flimsy dip successful the naira by 30 ground points, settling astatine N1,532.94/$ successful the Nigerian Foreign Exchange Market (NFEM).

This is present expected to alteration successful the days up unless the NNPC and Dangote tin scope an agreement.

Abubakar Maigandi, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed discontent with the caller directive from Dangote Refinery, urging the authorities and NNPC to proceed crude income successful naira to prolong the downward inclination successful petrol prices and guarantee availability crossed the country.

“We telephone connected the authorities and the NNPC to proceed the income of crude to the Dangote Refinery successful Naira. Since the Naira -for-Crude income commenced, we person seen a continuous simplification successful the terms of petrol arsenic good arsenic its availability crossed the country."

NNPC to present merchantability lone Dangote petrol

Earlier, Legit.ng reported that NNPC Limited has confirmed that it has ended the importation of petrol and present patronises Dangote Petroleum Refinery.

Mele Kyari believes that the displacement distant from imports volition assistance trim the unit the naira faces connected the forex speech markets.

Aliko Dangote has ever stressed that his $20 cardinal refinery tin conscionable the petrol needs of Nigerians and that determination is nary request to import.

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Source: Legit.ng