A storm is brewing over Nigeria’s oil sector as the Conference of Progressive Nigerians (CPN) has issued a stern warning to the Nigerian National Petroleum Company Limited (NNPCL), cautioning against any attempt to halt the naira-for-crude exchange arrangement. The group insists that suspending the policy will not only destabilize the country’s fragile forex reserves but also escalate the suffering of millions of Nigerians already grappling with an unstable economy.
Reports surfaced that the NNPCL had halted the naira-for-crude deal until 2030 after forward-selling all its crude oil. This sparked immediate concern, with fears that such a decision could have disastrous implications for Nigeria’s economic stability. However, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, moved to dispel these fears, clarifying that the agreement, which was approved by the Federal Executive Council (FEC), remains in effect.
Despite this reassurance, the CPN remains unconvinced. Speaking at a press conference in Abuja, the convener of the group, Dr. Emmanuel Agabi, described any move to suspend the policy as a direct attack on President Bola Ahmed Tinubu’s economic agenda and a calculated attempt to frustrate the development of local refineries. He raised serious questions about the timing of the alleged suspension, especially considering reports that Nigeria’s crude oil output has increased since the inception of the naira-for-crude arrangement.
Agabi further challenged the NNPCL to reveal who benefits from the forward contracts that supposedly justify the suspension. He argued that halting the deal would throw Nigeria’s foreign exchange reserves into further distress, weaken the already struggling naira, and force local refineries to source crude oil in dollars, making fuel production costlier and driving up pump prices.
“The consequences will be catastrophic,” Agabi warned. “This decision will worsen Nigeria’s forex crisis, drive up inflation, and impose unbearable hardship on ordinary citizens. We cannot sit back and watch the NNPCL prioritize profit over the economic survival of millions of Nigerians.”
The group went further to accuse the NNPCL of colluding with external forces to destabilize Nigeria’s oil and gas sector. They alleged that some powerful interests within the company were placing their personal gains above the welfare of the nation.
With public frustration growing over rising fuel prices and the continued depreciation of the naira, the CPN demanded that the Federal Government launch a full-scale probe into the activities of the NNPCL. They insisted that those responsible for any attempt to sabotage the naira-for-crude exchange should be held accountable.
According to the group, Nigeria’s local refineries have the capacity to meet domestic fuel demand if given adequate support. They called on the government to investigate allegations of corruption and secrecy within the NNPCL and take immediate steps to ensure that the policy remains intact.
“We will not stand by and watch economic saboteurs ruin this country,” Agabi declared. “The leadership of the NNPCL must understand that their actions will no longer go unchallenged. If they think they can continue running Nigeria’s oil sector like a private cartel, they are mistaken. The people of Nigeria are watching, and we will take all necessary steps to hold them accountable.”
With tensions rising, the future of the naira-for-crude policy remains uncertain. If the deal is indeed suspended, it could set off a chain reaction that would hit Nigeria’s economy hard, affecting fuel prices, inflation, and the stability of the naira. As pressure mounts on the government and the NNPCL to clarify their position, Nigerians are left wondering whether their economic future is being decided behind closed doors.
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