CEDES slams NNPC over Naira-for-crude policy

Centre for Energy Development and Economic Sustainability (CEDES) has slammed the Nigerian National Petroleum Company Limited (NNPCL) over the controversy surrounding its naira-for-crude policy.

The group warned that the idea would cripple local refineries and sustain Nigeria’s dependence on fuel imports.

In a statement issued in Abuja on Tuesday, March 25, 2025, Dr. Umar Sani, Executive Director of CEDES, accused the NNPCL of working against national interest by prioritizing foreign exchange gains over the survival of local refiners.

Sani 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 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.

“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,” he added.

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.