NNPCL’s ‘Dollars for Crude’ Policy Threatens Local Refineries, Says CEDES

By Mike Odeh James

The Centre for Energy Development and Economic Sustainability (CEDES) has strongly condemned the Nigerian National Petroleum Company Limited (NNPCL) over its recent ‘Dollars for Crude’ policy. CEDES warns that this move is a deliberate attempt to 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.

He 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,” Sani said. “This policy is designed to choke local refineries, making it impossible for them to access crude oil at reasonable rates.”

Sani further stated that the ultimate goal of the policy is to force Nigeria back into total reliance on fuel imports, which benefits only a corrupt few. He emphasized that under the Naira-for-Crude system, the NNPCL could no longer make 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. However, with the new move, Nigeria is back to a system where crude oil is sold in dollars, fueling corruption and economic instability.

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,” Sani stated. “The NNPCL must not be allowed to undermine Nigeria’s energy security and economic sovereignty.”

The fate of Nigeria’s local refineries and the country’s economic stability hang in the balance as the federal government considers CEDES’ call to reverse the ‘Dollars for Crude’ policy.