The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has lauded the Federal Executive Council (FEC) for approving the continuation of the Naira-for-Crude policy, describing the move as a major step toward improving Nigeria’s energy security and stabilizing the economy.
The policy allows local refineries, including the Dangote Refinery, to purchase crude oil in Naira rather than in U.S. dollars. PETROAN believes this initiative will reduce Nigeria’s dependence on foreign exchange for petroleum product procurement and bolster the nation’s refining capacity.
According to PETROAN, the key objectives of the policy include boosting Local Refining Capacity to encourage domestic refining and infrastructure investment. Enhancing Energy Security in order to reduce reliance on foreign exchange for petroleum imports.
Stabilizing the Foreign Exchange Market will help to minimize dollar demand in the oil sector.
Speaking to journalists, PETROAN National President Dr. Billy Gillis Harry commended President Asiwaju Bola Ahmed Tinubu and key industry stakeholders for their roles in sustaining the policy.
He praised the Honourable Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the CEO of NMDPRA, Engr. Farouk Ahmed, and the CEO of NUPRC, Engr. Gbenga Komolafe, for initiating critical roundtable discussions aimed at ensuring affordability and price stability in the petroleum sector.
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Dr. Harry expressed optimism that the policy, combined with the recent drop in global crude oil prices, would lead to a reduction in domestic fuel prices. He noted that local refineries, empowered by the policy, would be able to produce fuel at lower costs, a development that should ultimately benefit Nigerian consumers.
He attributed the recent decline in global crude oil prices to a combination of factors, including weakened demand due to economic slowdowns in major economies and increased production from non-OPEC countries, resulting in a global supply glut.
Additionally, Dr. Harry cites U.S. President Donald Trump’s tariff policies as a contributing factor, claiming they led to reduced global economic growth and, by extension, lower crude prices.
As the international oil market remains volatile, PETROAN expressed confidence that the Naira-for-Crude policy would act as a buffer for Nigeria, helping to protect the economy from global shocks while promoting self-sufficiency and local production.
“The full implementation of this policy, as directed by the Federal Executive Council, is a positive and strategic step toward long-term fuel affordability and downstream stability,” Dr. Harry stated.
