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Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has kicked against the sale of crude oil in naira by the Federal Government to the Dangote Petroleum Refinery.
In a statement on Monday, Adewole said, “The naira-for-crude oil transaction framework presents significant risks that could affect Nigeria’s foreign exchange stability and deter foreign direct investment.”
This is coming as the Dangote refinery suspended the sale of petrol in naira due to the Federal Government’s alleged refusal to sell more crude in naira to the facility.
Adewole highlighted concerns over the volatility of the naira, emphasising that crude oil transactions were traditionally carried out in US dollars due to its stability and global acceptability.
He cautioned that failure to align with this international standard could isolate Nigeria from global markets, diminishing trade opportunities and discouraging investment inflows.
“The global oil market operates in US dollars due to its stability. Continuing the policy could alienate trade partners and investors who rely on the predictability of the dollar,” he stated.
Adewole stressed the need for policies that recognise the unique nature of the oil and gas sector to ensure sustained national competitiveness.
He noted that “reactionary policies often create skewed economic benefits that primarily favour select industry players rather than the broader economy.”
Citing the historical instability of the naira due to inflationary pressures and fluctuating exchange rates, Adewole asserted that tying crude oil transactions to the naira could exacerbate these challenges…