NNPCL’s Dollars-for-Crude Policy: CEDES Warns of Economic Sabotage
Written by SpringsNewsNG Media Limited – March 26, 2025
The Centre for Energy Development and Economic Sustainability (CEDES) has strongly criticized the Nigerian National Petroleum Company Limited (NNPCL) over its controversial shift from the Naira-for-Crude policy, warning that the move could cripple local refineries and deepen Nigeria’s dependence on imported fuel.
In a statement released in Abuja on Tuesday, March 25, 2025, CEDES Executive Director, Dr. Umar Sani, accused the NNPCL of acting against national interest by prioritizing foreign exchange gains over the sustainability of indigenous refiners. According to him, the Naira-for-Crude system had previously ensured a steady supply of crude to local refineries while saving the government significant amounts in foreign exchange, which could then be reinvested in critical infrastructure projects.
“It is outrageous that the NNPCL, instead of strengthening local refining, has chosen to sabotage it by imposing a dollars-for-crude system,” Sani stated. “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 further argued that the Naira-for-Crude system had disrupted the long-standing trend of exaggerated fuel import claims, which were used to justify massive subsidy expenditures. “Under the Naira-for-Crude arrangement, 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 shift could result in higher fuel prices, petrol scarcity, worsening inflation, and increased hardship for Nigerians.
The organization called on the federal government to immediately reverse the policy and reinstate 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 emphasized.
The controversy surrounding the policy shift continues to generate debate among industry stakeholders, economists, and policymakers, with many warning of its far-reaching consequences on Nigeria’s energy sector and broader economy.
