The Nigerian National Petroleum Company Limited is under increasing scrutiny following the suspension of its Naira-for-Crude policy, a move that has drawn sharp criticism from various stakeholders who argue it undermines local refinery operations and exacerbates economic challenges.
Introduced in October 2024, the Naira-for-Crude initiative aimed to supply crude oil to domestic refineries in exchange for payment in Naira, thereby reducing reliance on foreign exchange and stabilizing fuel prices. The policy was part of a broader strategy to bolster the local refining sector and strengthen the national currency.
However, the six-month pilot phase concluded at the end of March 2025, and the NNPCL has yet to announce a renewal. This has led to concerns about the continuity of support for local refineries, particularly the Dangote Refinery, which had been a primary beneficiary of the scheme.
The Conference of Progressive Nigerians , a political pressure group, has condemned the suspension, accusing the NNPCL of prioritizing corporate interests over national welfare. Dr. Emmanuel Agabi, the group’s convener, described the move as a “treacherous act” that threatens Nigeria’s economic sovereignty. He warned that the policy shift could deplete foreign exchange reserves, increase pressure on the Naira, and lead to higher petroleum prices, thereby intensifying economic hardship for Nigerians.
Similarly, the Niger Delta Development and Transformation Initiative has criticized the NNPCL’s decision, asserting that the suspension undermines efforts to make local refineries operational. The group emphasized that no amount of discussions or actions could salvage Nigeria’s energy sector unless local refineries are made functional.
The NNPCL, through its Chief Corporate Communications Officer, Olufemi Soneye, has denied claims of terminating the Naira-for-Crude deal with the Dangote Refinery. Soneye clarified that the agreement was structured as a six-month contract, subject to availability, and expired at the end of March 2025. He stated that discussions are ongoing towards establishing a new contract and reaffirmed the company’s commitment to supplying crude oil for local refining based on mutually agreed terms.
Despite these assurances, concerns persist about the adequacy of crude supply to domestic refineries. Reports indicate that the Dangote Refinery has faced inconsistent supply, forcing it to resort to importation. This inconsistency has raised questions about the NNPCL’s commitment to supporting local refining capacity and reducing fuel importation.
Critics argue that the suspension of the Naira-for-Crude policy could reverse gains made in stabilizing fuel prices and strengthening the Naira. They contend that the policy was instrumental in reducing the need for foreign exchange to import fuel and in ensuring a steady supply of refined products.