The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has thrown its weight behind the Federal Executive Council’s recent decision to advance the Naira-for-Crude policy — a move the association says could usher in major improvements in the country’s energy landscape.
Speaking in Abuja, PETROAN’s National Public Relations Officer, Joseph Obele, praised the initiative, noting that it could lead to reduced fuel costs and improved domestic refining. “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 policy as a “strategic move aimed at reducing our dependence on foreign exchange, enhancing local refining capacity, and ultimately stabilizing the downstream sector.”
The policy allows local refineries, including the Dangote Refinery, to purchase crude oil using Naira rather than U.S. dollars. PETROAN believes this will lessen the pressure on Nigeria’s foreign exchange reserves, spur investment in refining infrastructure, and strengthen national energy security.
Obele credited President Bola Tinubu and other key government figures — such as Petroleum Minister of State (Oil) Senator Heineken Lokpobiri, Finance Minister Wale Edun, NMDPRA CEO Farouk Ahmed, and NUPRC’s Gbenga Komolafe — for their efforts in pushing forward reforms aimed at benefiting the Nigerian populace.
“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 addressed global oil trends, pointing out that falling crude prices—driven by weakening demand in large economies and increased supply from non-OPEC producers—could align with the policy to deliver cheaper fuel locally.
“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 said.
He even referenced historical international developments, noting, “President Trump’s policy of reciprocal tariffs in the past contributed to the global economic slowdown, which in turn has had a deflationary impact on oil prices.”
Despite the unpredictability of global energy markets, Obele said Nigeria is now in a position to shield itself from external shocks. “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,” he stated.
He closed by reaffirming PETROAN’s dedication to supporting policies that promote local refining, preserve Nigeria’s forex reserves, and ultimately improve the daily lives of fuel users across the country.
