A major controversy has erupted over the Nigerian National Petroleum Company Limited’s (NNPCL) recent shift from the naira-for-crude policy, with the Centre for Energy Development and Economic Sustainability (CEDES) accusing the oil giant of acting against national interests.
Dr. Umar Sani, Executive Director of CEDES, slammed the NNPCL in a statement issued in Abuja on Tuesday, warning that abandoning the naira-for-crude arrangement in favor of a dollar-based system would cripple local refineries and push Nigeria back into heavy dependence on imported fuel.
“It is outrageous that instead of strengthening local refining, the NNPCL is actively sabotaging it. By imposing a dollars-for-crude system, they are making it impossible for local refiners to access crude at reasonable rates,” Sani said.
He argued that the naira-for-crude policy had not only ensured a steady supply of crude to Nigerian refineries but also helped the government save on foreign exchange and reinvest in critical infrastructure.
“Under the naira-for-crude system, the usual bogus claims of fuel imports to justify billions in subsidies were reduced. The policy brought transparency, saved forex, and encouraged local production. But now, by shifting back to dollar payments, the NNPCL is fueling corruption and economic instability,” he added.
CEDES warned that this move could lead to a rise in fuel prices, severe petrol scarcity, higher inflation, and greater economic hardship for Nigerians.
The group is now calling on the federal government to reverse the policy shift and reinstate the naira-for-crude system, which they say is vital for Nigeria’s energy security and economic stability.
“The government must put an end to this reckless sabotage of local refineries. The NNPCL must not be allowed to jeopardize Nigeria’s economic sovereignty,” Sani stated.
