By Abayomi Odunowo
The Nigerian National Petroleum Company (NNPC) Limited’s decision to discontinue the naira-for-crude arrangement is not merely a misguided business choice; it is a reckless gamble with the lives and financial stability of millions of Nigerians. As citizens face the crushing weight of soaring prices at the pump—currently N870 per liter of Premium Motor Spirit (PMS)—the abrupt end of this initiative threatens to exacerbate an already dire economic situation. In a nation where over 133 million people are living in multidimensional poverty, the implications are not just significant—they are devastating.
The naira-for-crude initiative was introduced on October 1, 2024, as a strategic response to the challenges plaguing Nigeria’s fuel sector. This policy was designed to promote local refining, reduce the country’s dependency on imports, and stabilize fuel prices. The goal was simple yet profound: protect the naira from the relentless pressure of the foreign exchange market while providing a reliable fuel supply for the Nigerian populace. The NNPC’s decision to suspend this arrangement is an act of economic sabotage that disregards the well-being of ordinary Nigerians.
The rationale provided by NNPC—that all crude has been forward-sold until 2030—rings hollow. When did the interests of international buyers become more important than the welfare of the Nigerian people? The naira-for-crude arrangement was no mere contractual agreement; it was a lifeline for Nigerians struggling to make ends meet. By prioritizing foreign commitments over domestic needs, the NNPC has failed its most critical obligation—to serve the citizens of Nigeria. This is especially poignant in light of the Federal Executive Council’s recent approval of 450,000 barrels for local refining, with payments in naira—a clear mandate that NNPC has now chosen to undermine.
The implications of this decision are monumental. Without the automatic rollover of this contract, Nigeria is teetering on the precipice of returning to an era marked by fuel scarcity and rampant price hikes. Citizens cannot afford the backsliding into economic chaos when their daily survival is already a struggle. NNPC’s leadership must grasp the reality that market forces cannot dictate the price of fuel in a nation grappling with extensive poverty levels. The failure to ensure seamless continuity in local supply, through proper renewal of the naira-for-crude contract, is not just a lapse in judgment; it’s a gross dereliction of duty.
It is time for NNPC to heed the realities of the Nigerian economy and take decisive action. A swift, unconditional return to the naira-for-crude arrangement is not merely advisable—it is critical. NNPC must realign its priorities, demonstrating unequivocally that it serves the people of Nigeria, not foreign interests. Under the vision of President Bola Ahmed Tinubu, the trajectory of the Nigerian economy should focus on developing local resources, ensuring price stability, and offering citizens the financial relief they desperately need.
The expectation among Nigerians is clear: they seek further reductions in PMS prices, not the looming prospect of chaos. The urgency for a quick restoration of this arrangement cannot be overstated. Anything less would not only betray the trust of the Nigerian populace but also plunge the nation into economic turmoil. NNPC’s leadership faces a crucial test of its commitment to the welfare of its people. The time to act is now.
The jdiscontinuation of the naira-for-crude arrangement reflects a short-sightedness unbecoming of a national oil corporation. To avert disaster and restore faith in their capabilities, the leadership of NNPC must reverse this detrimental decision and manifestly demonstrate their commitment to the Nigerian people. The path to economic recovery lies in immediate action that prioritizes the welfare of citizens over foreign commitments. The ball is indeed in NNPC’s court—the necessity for a swift response has never been clearer.
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
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