11th April 2025, NewsOrient, News, Business And Economy, Governance And Development

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NNPCL trucks lining up for petrol loading at the Dangote Refinery.

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Posted By Samuel Egburonu, Editor

Following Federal Government of Nigeria”s endorsement of Naira For Crude Policy, Nigerians are hopeful that the current high pump price of petroleum products, including Premium Motor Spirit (PMS), otherwise called fuel, will be radically reduced.

Commuters, commercial drivers and others who spoke to NewsOrient today, said it would be unfair if the pump price of petrol and other petroleum products remain unaffordable when local refiners buy crude oil with the Naira.

Some organized stakeholders in the oil industry have also expressed the hope that following the Crude for Naira Policy, fuel price should be significantly reduced.

For example, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has reportedly expressed strong support for the Federal Executive Council’s recent approval of the continuation of the Naira-for-Crude policy.

The association believes the policy could mark a turning point in the country’s energy sector.

Speaking to newsmen in Abuja, PETROAN’s National Public Relations Officer, Joseph Obele, said the association is optimistic that the policy, combined with the recent drop in global crude oil prices, will lead to more affordable fuel prices for Nigerian consumers.

He said: “We want to sincerely commend the Federal Executive Council for its decision to fully implement the Naira-for-Crude policy,” Obele said.

“This is a strategic move aimed at reducing our dependence on foreign exchange, enhancing local refining capacity, and ultimately stabilizing the downstream sector.”

Obele, on behalf of PETROAN, contended that this change will not only ease pressure on the foreign exchange market but also encourage investment in the country’s refining infrastructure and improve Nigeria’s overall energy security.

“This is a policy that supports local production and shields our economy from the volatility of the global oil market,” he said. “When our refineries buy crude in Naira and process it locally, the cost of production reduces significantly, and that benefit can and should be passed on to end users.”

Obele also highlighted the global context, noting that a decline in international crude oil prices — triggered by slowing demand in major economies and increased output from non-OPEC producers — presents an opportunity for local price adjustments.

“The global oil market is experiencing a supply glut. Demand is weakening due to economic slowdowns in key economies, and non-OPEC countries are ramping up production. These factors are driving crude prices down,” he noted.

He said further, “with the Naira-for-Crude policy in place, we are hopeful that Nigerian consumers will soon start to feel the positive effects — not just in terms of stable supply, but in actual price reductions at the pump,” Obele stated.

Olugbenga Muyiwa, an Engineer and commuter in Agege area of Lagos told NewsOrient that “it would be unfair if after this innovative policy, fuel remains unaffordable to a common Nigerian.

“Before now, we were told that crude oil must be bought with American dollar and so, the price of fuel must be calculated with the dollar.

“With this policy, I think that situation has changed for good. Now we have Dangote Refinery and others. If they would be allowed to buy crude oil from Nigeria with the Naira, and they refine it here in Nigeria, then, the price must be affordable as it would not be computed with American dollar or cost of a litre of petrol in New York.”

Another respondent, Friday Enemah, a Keke operator in Agbado, said pointedly: “If after implemention of this policy, fuel remains costly in Nigeria, we all will understand that the high cost is just a deliberate way of punishing poor Nigerians.

“We own crude oil in Nigeria; we also refine it here in Nigeria, so why must it remain unaffordable? Why?”

~ Published By NewsOrient Network

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