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The Nigerian National Petroleum Company Limited (NNPCL) has come in for criticism from the Centre for Energy Development and Economic Sustainability (CEDES) over its recent decision to shift to a Dollars-for-Crude policy.
This follows the NNPCL's failure to renew the six-month-old naira-for-crude deal with major Indigenous refiners.
CEDES Executive Director, Dr. Umar Sani, in a statement issued in Abuja on Tuesday, March 25, 2025, condemned the national oil company for the move, accusing it of working against national interest by prioritising foreign exchange gains over the survival of local refiners.
He alleged that the move is a deliberate attempt to cripple local refineries and sustain Nigeria’s dependence on fuel imports.
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Sani stressed 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,” he 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.”
The Centre warned that the NNPCL’s latest move could trigger higher fuel prices, petrol scarcity, worsening inflation, and inflict further hardship on Nigerians.
CEDES called on the Federal Government to immediately reverse the policy and uphold the naira-for-crude policy to support local refining and economic stability.
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“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 added.