The Nigerian National Petroleum Company Limited (NNPCL) has come under fire from the Centre for Energy
Development and Economic Sustainability (CEDES) for the controversy surrounding its naira-for-crude policy. The
CEDES warns that the plan would cripple local refineries and continue Nigeria’s reliance on fuel imports.
Dr. Umar Sani, Executive Director of CEDES, charged in a statement released in Abuja on Tuesday, March 25, 2025,
that the NNPCL was acting against the interests of the country by putting foreign exchange profits ahead of the
survival of regional refiners.
The Naira-for-crude agreement, according to Sani, has helped the government save foreign cash and reinvest in vital
infrastructure while guaranteeing a consistent supply of oil to Nigerian refineries.
“It is outrageous that the NNPCL, instead of strengthening local refining, has decided to sabotage it by imposing 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. The ultimate goal is to force Nigeria back into total reliance on fuel imports, which benefits only a corrupt few,” Sani said.
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“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, fuelling corruption and economic instability,” he added.
The current action by the NNPCL, according to CEDES, may result in increased gasoline costs, a shortage of petrol,
growing inflation, and additional hardship for Nigerians.
In order to promote local refining and economic stability, the centre urged the federal government to immediately reverse the policy and maintain the Naira-for-Crude system.
“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.
