Tinubu's Govt Asked To Immediately Uphold Naira-For-Crude System As Higher Fuel Prices Loom

• The Centre for Energy Development and Economic Sustainability (CEDES) has called on the federal government to reinstate the Naira-for-Crude policy
• CEDES alleged that switching to a dollars-for-crude system could weaken local refineries by limiting access to crude oil at favorable rates, increasing Nigeria’s reliance on fuel imports
• The group warned that abandoning the Naira-for-Crude system could cause petrol scarcity, inflation, and economic strain on Nigerians, urging the government to reconsider the policy

FCT, Abuja - The Centre for Energy Development and Economic Sustainability (CEDES) has called on the federal government to immediately reinstate the Naira-for-Crude policy, warning that its discontinuation could lead to higher fuel prices and economic instability.

In a statement cited by Legit.ng and issued in Abuja on Tuesday, March 25, 2025, CEDES alleged that the Nigerian National Petroleum Company Limited (NNPCL) had moved to replace the Naira-for-Crude system with a dollars-for-crude arrangement.

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Hence, the group warned that such move could hinder local refinery operations and increase Nigeria’s reliance on fuel imports.

Concerns over local refining and economic impact

Dr. Umar Sani, Executive Director of CEDES, cautioned that the shift in policy could weaken local refineries by making it more difficult for them to access crude oil at favorable rates.

He argued that the previous Naira-for-Crude system had ensured a steady supply of crude to Nigerian refineries, reducing reliance on fuel imports and saving the federal government valuable foreign exchange.

“It is concerning that instead of strengthening local refining capacity, this shift could make it more difficult for refineries to operate effectively. The consequence could be an increased dependency on imports, which comes at the detriment of national economic stability,” Sani stated.

He further highlighted that under the Naira-for-Crude system, the government was able to control petrol pricing more efficiently while limiting excessive foreign exchange expenditure on fuel imports.

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Potential Impact on Fuel Prices and Inflation

CEDES warned that abandoning the Naira-for-Crude arrangement could lead to fuel scarcity, rising petrol costs, and heightened inflation, further worsening economic hardship for Nigerians.

“With this shift, we are at risk of seeing higher petrol prices, fuel shortages, and a strain on the economy. The burden will ultimately fall on ordinary Nigerians, who are already struggling with inflation and economic uncertainty,” Sani added.

While CEDES expressed strong opposition to the alleged shift, the NNPCL has yet to officially respond to the claims. However, energy sector analysts suggest that any policy adjustment should be carefully examined to balance local refining needs with broader economic considerations.

Calls for government intervention

The organization urged the federal government to take immediate action in reviewing and reinstating the Naira-for-Crude system, emphasizing the need to support local refining capacity as part of broader energy security and economic sustainability efforts.

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“We call on the government to reconsider this policy direction and prioritize the long-term benefits of local refining. Maintaining the Naira-for-Crude system will not only enhance energy security but also ensure economic stability for the country,” Sani concluded.

As discussions on fuel pricing and refinery operations continue, industry experts and stakeholders are keenly watching how the government will address the concerns raised by CEDES and other advocacy groups.

New pump prices expected as cost of fuel increases

Earlier, Legit.ng reported that petroleum marketers said that petrol prices at the pump in Nigeria could rise to at least N930 per litre nationwide.

The prediction followed another increase in the ex-depot price of petroleum products by private depots. Companies like Pinnacle, AIPEC, Rainoil Lagos, and WOSBAB reported this latest price adjustment.

Source: Legit.ng