Market News

By Sodiq Omolaoye, Abuja

The Conference of Progressive Nigerians (CPN) has cautioned the Nigerian National Petroleum Company (NNPC) Limited against suspending the naira-for-crude oil exchange arrangement.

The group warned that such a move could have severe economic consequences.

This came in response to claims that the government-owned oil company had suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, however, clarified that the agreement, approved by the Federal Executive Council (FEC), is still in effect.

Speaking at a press conference in Abuja on Tuesday, the convener, Dr. Emmanuel Agabi, said any move to halt such arrangements would be a blatant attempt to undermine the economic goals of President Bola Ahmed Tinubu’s administration and sabotage the growth of local refineries.

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

He also demanded to know who benefits from the forward contracts that the NNPCL claims justify the suspension of the naira-for-crude deal.

The CPN 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, they argued, would lead to skyrocketing petroleum prices and inflict severe hardship on Nigerian citizens.

The group accused the NNPCL of prioritizing its selfish interests over the collective good of the nation and of acting in cahoots with external forces to destabilise the Nigerian oil and gas sector.

They demanded that the Federal Government initiate a full-scale probe into the activities of the NNPCL and hold those responsible for the suspension of the naira-for-crude deal accountable for their actions.

The CPN said that Nigeria’s local refineries are competent and capable of meeting domestic demands if given the necessary support.
It urged the Federal Government to investigate allegations of corruption and collusion within the NNPCL and to take immediate action to reverse the suspension of the naira-for-crude deal.

“We, therefore, issue a stern warning to the leadership of the NNPCL: The days of impunity are over. 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 prioritize the interests of the nation over your selfish gains. Failure to do so will undoubtedly lead to dire consequences.

“Finally, the NNPCL must understand that it is a national institution, not a private cartel. Its duty is to serve Nigeria, not to sabotage it. The time for accountability is now!”