Centre to FG: Reinstate naira-for-crude policy

The Centre for Energy Development and Economic Sustainability (CEDES) has urged the federal government to reinstate the Naira-for-Crude policy. In a statement issued in Abuja on Tuesday, Dr. Umar Sani, Executive Director of CEDES, noted that the Naira-for-Crude arrangement had ensured steady crude supply to Nigerian refineries while helping the government save on foreign exchange […]

The Centre for Energy Development and Economic Sustainability (CEDES) has urged the federal government to reinstate the Naira-for-Crude policy.

In a statement issued in Abuja on Tuesday, Dr. Umar Sani, Executive Director of CEDES, noted that the Naira-for-Crude arrangement had ensured steady crude supply to Nigerian refineries while helping the government save on foreign exchange and reinvest in critical infrastructure.

“It is outrageous that the NNPCL, instead of strengthening local refining, has decided to impose a dollars-for-crude system. This policy is designed to choke local refineries, making it impossible for them to access crude oil at reasonable rates,” Sani said.

“Under the Naira-for-Crude system, the NNPCL could no longer make its usual bogus claims of petrol imports to justify billions of dollars in subsidies. The policy ensured transparency, saved the government huge amounts in foreign exchange, and allowed for reinvestment in developmental infrastructure. But with this new move, we are back to a system where crude oil is sold in dollars, fueling corruption and economic instability.”

CEDES warned that the NNPCL’s latest move could lead to higher fuel prices, petrol scarcity, worsening inflation, and further hardship for Nigerians.

The centre called on the federal government to immediately reverse the policy and uphold the Naira-for-Crude system to support local refining and economic stability.

“We demand that the government reinstate the Naira-for-Crude policy and stop this reckless sabotage of local refineries. The NNPCL must not be allowed to undermine Nigeria’s energy security and economic sovereignty,” Sani stated.