The Nigerian National Petroleum Company Limited (NNPCL) faces mounting criticism over its suspension of the naira-for-crude oil policy, a decision experts caution could worsen economic difficulties and undermine the stability of local refineries.
A pro-democracy group, the Conference of Progressive Nigerians (CPN), has strongly condemned the decision, calling it a significant setback for Nigeria’s economic sovereignty. Addressing journalists in Abuja, CPN convener Dr. Emmanuel Agabi described the move as a “treacherous act” and an “unforgivable betrayal” that could trigger severe consequences for the country’s energy sector.
Economic Implications of the Suspension
Agabi expressed concern that halting the naira-for-crude deal could lead to a sharp increase in petroleum prices, further depleting Nigeria’s forex reserves and intensifying pressure on the naira. He highlighted that since the inception of the policy, Nigeria’s crude output had seen a notable increase, making the decision to suspend it highly questionable.
“This move will force local refineries to purchase crude oil from international suppliers in dollars, further straining our forex reserves and weakening the naira. It is a direct attack on the growth and sustainability of our domestic refining sector,” Agabi stated.
Call for Government Intervention
The CPN has called on the Nigerian government to launch a full-scale investigation into NNPCL’s operations, demanding accountability from those responsible for the suspension. Agabi emphasized that Nigeria’s local refineries have the capacity to meet domestic demands if provided with adequate support.
“The days of impunity are over. The Nigerian people are watching, and we will take every necessary step to hold NNPCL accountable. This institution exists to serve the nation, not private interests,” he asserted.
Urgent Need for Policy Reassessment
The CPN urged NNPCL to reconsider its stance and reinstate the naira-for-crude deal to protect national economic stability. It also called for increased transparency in the petroleum sector, stressing that prioritizing national interests over corporate gains is crucial for sustainable development.
“We demand immediate action to restore this policy. Supporting local refineries will strengthen Nigeria’s economy, stabilize fuel prices, and reduce dependence on costly petroleum imports,” Agabi concluded.
As Nigeria navigates ongoing economic challenges, stakeholders continue to advocate for policies that support local industries, preserve forex reserves, and ensure affordable energy for all citizens.
