ActionAid Nigeria demands FG’s explanation on suspension of Naira-for-crude arrangement

ACTIONAID Nigeria, AAN, demanded explanation from the Federal Government on the suspension of the Naira-for-crude arrangement. AAN expressed its concern in a statement signed by the Country Director, AAN, Andrew Mamedu, where it pointed out the current impact of the suspension of the deal as abandonment said Nigerians are not comfortable with the action. Mamedu said particularly the suspension of the sale of petroleum products in naira by the Dangote Petroleum Refinery, the decision has triggered panic buying, hoarding, and speculative price hikes, worsening the economic hardship faced by Nigerians. 
He also said the Federal Government’s failure to provide clear information on the status of local refining and crude supply raises serious concerns about transparency, accountability, and governance in the petroleum industry. He said “The Federal Government must immediately explain why the naira-for-crude arrangement has been abandoned despite its initial promise to stabilise fuel prices and increase local refining capacity. It is unacceptable for citizens to suffer the consequences of policy inconsistencies while a select few benefit from opaque crude oil transactions. The preference of the Nigerian National Petroleum Company Limited, NNPCL, for importing Premium Motor Spirit, PMS, instead of prioritising local refining raises further concerns. Locally refined fuel, particularly from the Dangote Refinery, has been argued to be cleaner and more durable. Yet, there is no clear justification for why locally refined fuel is not being prioritised in national fuel distribution. If NNPCL can seamlessly conduct international transactions, why can’t local refineries access crude in naira under fair terms? If unchecked, the suspension of the naira-for-crude agreement will push more Nigerians into multidimensional poverty, worsen social inequalities, and lead to further economic instability. 
“Rising fuel prices will drive up transportation costs, making it even more difficult for low-income earners to afford daily commutes, access essential services, or sustain small businesses. Key sectors such as agriculture, healthcare, and education – all of which directly or indirectly depend on petrol or diesel—will also be severely impacted.” According to him, the opacity surrounding NNPCL’s crude oil transactions raises concern about who truly benefits from the deals, which he queried why local refineries are struggling to access crude in Naira while international transactions continue seamlessly, then fundamental questions must be asked. “Is the government prioritising foreign interests over national economic stability? Who benefits from the refusal to supply local refineries with crude in naira, and at what cost to Nigerian consumers? 
‘‘ActionAid Nigeria strongly calls for independent third-party monitoring of crude oil transactions, fuel pricing, and distribution to ensure transparency and accountability. This should include a public audit of all crude oil sales, including forward contracts entered by NNPCL, as well as the establishment of a transparent mechanism to ensure that local refineries have priority access to crude oil under fair and stable terms. Additionally, there is an urgent need for a comprehensive review of pricing models to prevent exploitation by depot owners and marketers. Nigerians cannot continue to be victims of policy inconsistencies, regulatory failures, and corporate profiteering.’’ActionAid Nigeria urges the Federal Government to take immediate action to restore public confidence, protect citizens from further economic hardship, and ensure a fair and transparent energy sector”, he added.