An energy expert is pushing the Federal Government to reinforce its crude-for-naira policy, warning against Dangote Refinery's shift to dollar-based pricing for petroleum products. Joseph Obele, a lecturer at Ignatius Ajuru University of Education in Port Harcourt and national public relations officer of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), raised the alarm over the refinery's reported decision to stop naira sales.
Obele told reporters that the government should broaden the crude-for-naira initiative to guarantee domestic refineries get enough crude to meet production targets. He stressed that the Nigerian National Petroleum Company Limited (NNPCL) needs to supply more crude to local facilities, cutting reliance on imported supplies and supporting naira-denominated deals.
The Central Bank of Nigeria, Federal Ministry of Petroleum Resources, and other regulators must spell out clear rules on which currency applies to domestic petroleum transactions, he insisted. This step, according to him, is vital to keep public confidence in the naira intact.
Obele called on the government to strengthen the foreign exchange market by ramping up crude oil output, boosting export revenue, and backing the naira's strength. He stressed that industry players must collaborate to ensure commercial moves help both business survival and Nigeria's broader economic health.
"Every investor deserves reasonable returns, but policies in critical sectors like petroleum must balance business reality with wider economic effects," Obele said. He warned that decisions affecting energy pricing touch government revenue, businesses, investors, and the lives of millions of Nigerians.
News reports of Dangote's naira sales suspension sparked concern across the sector, the expert noted. He described it as a major policy issue that demands careful thought about consequences beyond pure commerce.
Some analysts have backed Dangote's move, pointing out that the refinery buys crude on international markets and pays in dollars. They also argued that crude volumes under the government's arrangement may fall short of what the facility needs to run at full capacity.
But Obele drew a parallel with the government's earlier crackdown on foreign currency school fees. The Federal Government had discouraged international schools from collecting tuition in foreign currencies to protect the naira's stability, he recalled.
"If the government stopped schools from charging fees in dollars, why should products sold within Nigeria be priced in foreign currency?" Obele questioned. He underscored that petroleum remains Nigeria's economic lifeline and that major decisions affecting it must reflect the country's long-term interests.
