The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has thrown its weight behind the recent approval by the Federal Executive Council (FEC) for the continuation of the Naira-for-Crude policy, describing it as a transformative initiative that could redefine the country’s energy landscape.
Addressing journalists in Abuja, the National Public Relations Officer of PETROAN, Joseph Obele, expressed confidence that the combination of this policy and the recent downward trend in global crude oil prices would translate into more affordable fuel prices for Nigerians.
“We want to sincerely commend the Federal Executive Council for its decision to fully implement the Naira-for-Crude policy,” Obele said.
He described the move as a strategic intervention designed to reduce Nigeria’s overdependence on foreign exchange, bolster local refining operations, and stabilize the downstream petroleum sector.
The Naira-for-Crude policy entails the allocation and sale of crude oil to domestic refineries — including the Dangote Refinery and other modular plants — in Naira rather than U.S. dollars. According to PETROAN, this shift will ease pressure on the forex market, stimulate greater investment in local refining, and enhance national energy security.
Obele also lauded President Bola Ahmed Tinubu and other principal actors such as the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed; and the CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, for their leadership in pursuing reforms tailored to the needs of the Nigerian populace.
“This is a policy that promotes local content, enhances economic sovereignty, and shields our domestic economy from the instability of global oil markets,” he noted. “By enabling refineries to procure crude oil in Naira and refine products locally, production costs drop significantly, and this reduction can — and should — be passed on to consumers.”
Obele further pointed to the prevailing global market dynamics, noting that a drop in crude oil prices — spurred by declining demand in major economies and increased production from non-OPEC countries — presents a window of opportunity for downward price adjustments in Nigeria.
“The global oil market is currently facing a surplus. Demand is weakening due to economic slowdowns across key economies, while non-OPEC producers are increasing output. These developments are pushing prices downward,” he said.
He also linked the global market trends to earlier international policy decisions. “For example, former President Donald Trump’s era of reciprocal trade tariffs contributed to an economic slowdown globally, and this has had a deflationary effect on oil prices,” Obele remarked.
In spite of the volatility of the international oil market, PETROAN maintains that the implementation of the Naira-for-Crude policy offers Nigeria a unique opportunity to shield its economy from external disruptions.
“With this policy now in effect, we are optimistic that Nigerians will soon experience tangible benefits — not just a more stable fuel supply, but actual price reductions at filling stations,” Obele said.
