Dangote Petroleum Refinery has resumed selling petrol in Nigerian naira after briefly switching to dollar-based pricing, highlighting ongoing challenges in securing sufficient crude supplies for Africa’s largest refinery.

The refinery returned to naira-denominated fuel sales on July 23, but increased its ex-depot petrol price to 1,215 naira per litre, compared with 1,075 naira previously. The move followed a temporary shift to dollar pricing, which was linked to difficulties in obtaining enough crude oil through Nigeria’s “naira-for-crude” programme.

The programme, introduced by the Nigerian government, was designed to allow domestic refineries to purchase crude oil in local currency, reducing pressure on foreign exchange reserves and supporting local fuel production. However, Dangote Refinery has indicated that the crude volumes supplied under the arrangement remain insufficient to fully meet the refinery’s needs.

With a processing capacity of 650,000 barrels per day, the Dangote refinery was built to reduce Nigeria’s dependence on imported refined petroleum products and strengthen domestic fuel supply. However, challenges related to crude availability, pricing and foreign exchange continue to affect its operations.

The latest development highlights the difficulties facing Nigeria’s ambition to achieve energy self-sufficiency. While the refinery has the potential to transform the country’s oil sector and become a major fuel supplier in Africa, securing a reliable supply of domestic crude remains a key challenge.

Dangote Refinery’s pricing shift reflects the wider challenge facing Nigeria: turning its vast oil resources into stable domestic fuel production.