The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has thrown its full support behind the Federal Executive Council’s recent decision to continue the implementation of the Naira-for-Crude policy—an initiative the association believes could mark a major turning point for the country’s energy landscape.
Speaking with journalists in Abuja, PETROAN’s National Public Relations Officer, Joseph Obele, expressed optimism that the policy—especially when combined with the current dip in global crude oil prices—could result in more affordable fuel for everyday Nigerians.
“We want to sincerely commend the Federal Executive Council for fully adopting the Naira-for-Crude policy,” Obele said. “It’s a strategic step that will reduce our overreliance on foreign exchange, boost local refining capacity, and help stabilize the downstream oil sector.”
The policy essentially allows domestic refineries—like the Dangote Refinery and others—to purchase crude oil in Naira rather than U.S. dollars. For a country grappling with foreign exchange challenges, this is a bold attempt to shift energy financing onto a more sustainable, localized footing.
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According to PETROAN, this change could ease pressure on Nigeria’s forex market, stimulate investment in refining infrastructure, and significantly strengthen the country’s energy security.
Obele went on to applaud President Bola Tinubu and key figures leading the charge for energy sector reform, including the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri; the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr. Farouk Ahmed; and the CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe.
“This is a policy that not only supports local production but also shields our economy from the unpredictable swings of the global oil market,” Obele said. “When our refineries can buy crude in Naira and process it locally, the cost of production drops—and those savings should be passed on to consumers at the pump.”
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The global oil market, Obele noted, is currently experiencing a supply glut driven by slowing demand in major economies and a production surge from non-OPEC countries. As crude prices fall, PETROAN sees an opportunity for Nigeria to adjust local fuel prices downward.
“There’s a real chance here,” Obele said. “International prices are falling due to economic slowdowns and increased supply from outside OPEC. That creates an opening for us to reprice locally refined products more affordably.”
He also reflected on how past international policies, such as U.S. President Donald Trump’s use of reciprocal tariffs, contributed to the broader economic slowdown—ultimately affecting global oil demand and prices.
Despite the volatility in the global market, PETROAN believes that with the Naira-for-Crude framework in place, Nigeria is better positioned to weather external shocks. “We’re hopeful Nigerian consumers will start to feel the benefits—steady supply, better prices, and less vulnerability to foreign exchange volatility,” Obele added.
He concluded by reaffirming PETROAN’s commitment to policies that champion local refining, conserve forex reserves, and deliver lasting economic relief to Nigerian fuel consumers. As Nigeria looks to reshape its energy future, the Naira-for-Crude policy may just be the foundation for a more resilient, self-sustaining fuel economy.
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