CSO cautions NNPC against suspending naira-for-crude deal with local refineries

The Conference of Progressive Nigerians (CPN), a civil society organisation (CSO), has cautioned the Nigerian National Petroleum Company (NNPC) Limited against suspending the naira-for-crude oil swap deal with domestic refiners.

On Monday, TheCable exclusively reported that the government-owned oil company has suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.

Less than 24 hours later, NNPCL said negotiation was ongoing for a new naira-for-crude deal with Dangote Petroleum Refinery.

The sale of crude oil and refined petroleum products in naira to local refineries commenced in October 2024 to improve supply, save the country millions of dollars in petroleum product imports, and ultimately reduce pump prices.

Speaking at a press conference in Abuja on Tuesday, Emmanuel Agabi, CNP coordinator, said NNPCL’s plan to suspend the deal is a “treacherous move”.

Agabi questioned the timing and implications of the NNPCL’s decision, citing reports that Nigeria’s crude output has increased since the inception of the deal.

He also demanded beneficiaries of the contracts that the NNPCL claims justify the suspension of the naira-for-crude deal.

Agabi warned that the suspension of the deal would have far-reaching consequences, including plunging Nigeria’s forex reserves into further distress, exacerbating the precarious state of the naira, and forcing local refineries to purchase crude oil from international suppliers in dollars.

This, he argued, would lead to skyrocketing petroleum prices and inflict severe hardship on Nigerians.

“We, therefore, issue a stern warning to the leadership of the NNPCL. The people of Nigeria are watching, and we will not hesitate to take all necessary actions to hold you accountable for your actions,” Agabi said.

“Therefore, we urge you to retrace your steps and prioritise the interests of the nation over your selfish gains. Failure to do so will undoubtedly lead to dire consequences.

“We demand transparency, justice, and immediate reinstatement of the naira-for-crude deal.

“Together, we can ensure that our local refineries thrive, our economy prospers, and our nation achieves the greatness it deserves.”

Agabi urged the federal government to investigate NNPCL and take immediate action to reverse the suspension of the naira-for-crude deal.