The Centre for Energy Development and Economic Sustainability (CEDES) has expressed concerns over the Nigerian National Petroleum Company Limited’s (NNPCL) recent shift to a Dollars-for-Crude policy, describing it as a calculated move to undermine local refineries and perpetuate Nigeria’s dependence on fuel imports.
In a statement released on Tuesday, March 25, 2025, in Abuja, Dr. Umar Sani, Executive Director of CEDES, accused NNPCL of prioritizing foreign exchange gains at the expense of local refining and national interest. He warned that the new policy threatens Nigeria’s energy security by sabotaging the supply chain that local refineries depend on.
Dr. Sani highlighted that the previous Naira-for-Crude arrangement ensured a steady crude supply to Nigerian refineries, reduced forex pressure, and allowed the government to reinvest savings in critical infrastructure. He argued that the shift to a dollar-denominated system makes it difficult for local refiners to access crude at affordable rates, potentially pushing the country back toward fuel import dependency
CEDES warned that the policy shift could trigger fuel scarcity, rising petrol prices, worsening inflation, and increased economic hardship for Nigerians. The organization called on the federal government to reverse the policy and reinstate the Naira-for-Crude system to safeguard the country’s energy and economic stability.
