ActionAid Nigeria demands answers from FG on suspension of Naira-for-Crude Oil arrangement.
ActionAid Nigeria (AAN) has raised concerns over the suspension of naira-for-crude arrangement and demanded for explanation from the Federal Government over the issue.
In a statement signed by the the Country Director of AAN, Mr Andrew Mamedu, the association queried the decision, insisting that the suspension of the arrangement isn’t palatable for most Nigerians.
Mr. Mamedu also stated that the decision has caused panic buying of fuel, hoarding of petroleum products and increased speculation of hike in fuel price.
He stated that this is not good for the country as it adds to the deteriorating economic situation in Nigeria.
He called on the federal government to provide answers to this challenging issue and address the tension in the petroleum market.
“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, ” he said.
“It is unacceptable for citizens to suffer the consequences of policy inconsistencies, while a select few benefit from opaque crude oil transactions.”
He slammed the Nigerian National Petroleum Company Limited (NNPCL) for insisting on petrol importation instead of prioritizing domestic refineries like Dangote Refinery and others who have more durable and better refined fuel.
“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.”
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“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.”
Mr Mamedu also pointed the negative effects of the suspension on the economy noting that transportation and other areas that depends on fuel will suffer adversely.
“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.”
He also questioned the position of the government on the issue, and asked if the government doesn’t consider the welfare of the citizens in the case.
“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,” he stated.
ActionAid Nigeria urged the Federal Government to take immediate action on the issue, restore public confidence, protect citizens from further economic hardship, and ensure a fair and transparent energy sector. Mamedu argued that Nigerians need answers and should be carried along on certain economic policies especially those that clearly and directly affect them.
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