– Backs FEC’s Naira-for-crude policy
Mkpoikana Udoma
Port Harcourt — The Petroleum Products Retail Outlets Owners Association of Nigeria, PETROAN, has hailed the Federal Executive Council for approving the continued implementation of the Naira-for-Crude policy, expressing optimism that the initiative, alongside the recent drop in global crude oil prices, would lead to a reduction in the cost of petroleum products in Nigeria.
Recall that the federal government recently confirmed that the Naira-for-Crude initiative with Dangote and other domestic refineries would continue to be implemented.
According to the federal ministry of finance, the stakeholders have reaffirmed the government’s continued commitment to the full implementation of this strategic initiative, as directed by the Federal Executive Council.
The Naira-for-Crude policy allows local refineries, such as the Dangote Refinery, to purchase crude oil in Naira rather than US dollars. The move is aimed at strengthening Nigeria’s local refining capacity, enhancing energy security, and easing pressure on the foreign exchange market.
Speaking, PETROAN National President, Dr. Billy Gillis Harry, commended President Bola Tinubu and key sectoral leaders for championing policies that prioritize affordability and price stability in Nigeria’s downstream sector.
Harry said, “We commend the President, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, the Minister of Finance, Mr. Wale Edun, and the CEOs of NMDPRA and NUPRC for championing this bold step. This is a strategic move towards making fuel more affordable and insulating the Nigerian economy from global oil price shocks.”
PETROAN further noted that the recent dip in international crude oil prices—caused by a mix of weakening global demand, economic slowdowns, and increased output from non-OPEC producers—should translate into lower domestic fuel prices, especially with the Naira-for-Crude policy in effect.
“With local refineries now sourcing crude in Naira, the cost of production is expected to drop significantly. We believe this will be reflected in pump prices, allowing Nigerians to feel the benefits of falling global oil prices.”
The association also linked the global price slump to geopolitical and economic shifts.
“The recession in major economies and reciprocal tariffs from President Trump’s administration have slowed global demand. This, combined with overproduction, has led to a supply glut,” he said.
“The Federal Executive Council has directed full implementation of the policy as part of efforts to strengthen local refining, reduce foreign exchange dependency, and stabilize the downstream petroleum sector.
“PETROAN’s optimism is rooted in the belief that Nigeria, by refining its own crude, can break free from the volatility of international markets and pass on cost savings to consumers.
“We are confident that this policy will help Nigeria achieve energy independence and greater price stability. We eagerly await its full rollout and encourage swift action to make the benefits felt across the country.”
