The Centre for Energy Development and Economic Sustainability (CEDES) has criticized the Nigerian National Petroleum Company Limited (NNPCL) over its recent shift to a Dollars-for-Crude policy, describing it as a calculated move to undermine local refineries and perpetuate Nigeria’s dependence on fuel imports.
In a statement released on Tuesday, March 25, 2025, in Abuja, Dr. Umar Sani, Executive Director of CEDES, accused NNPCL of prioritizing foreign exchange gains at the expense of local refining and national interest.
He warned that the new policy threatens Nigeria’s energy security by sabotaging the supply chain that local refineries depend on.
“The Naira-for-Crude arrangement ensured a steady crude supply to Nigerian refineries, reduced forex pressure, and allowed the government to reinvest savings in critical infrastructure. Now, with this Dollars-for-Crude system, NNPCL is making it impossible for local refiners to access crude at affordable rates, pushing the country back toward fuel import dependency,” Sani said.
He further argued that the Naira-based policy had curbed excessive spending on questionable fuel subsidies and increased transparency in the oil sector.
“By switching to this dollar-denominated system, NNPCL risks reintroducing the corruption and inefficiency that have plagued Nigeria’s oil industry for years,” he added.
CEDES warned that the policy shift could trigger fuel scarcity, rising petrol prices, worsening inflation, and increased economic hardship for Nigerians.
The organization called on the federal government to reverse the policy and reinstate the Naira-for-Crude system to safeguard the country’s energy and economic stability.
“We urge the federal government to stop this reckless undermining of local refining and restore the Naira-for-Crude policy. Allowing NNPCL to continue with this policy will only deepen Nigeria’s dependence on imports and jeopardize its economic sovereignty,” Sani concluded.
Credit: thenationonlineng.net
