ActionAid Nigeria (AAN) has raised serious concerns over the ongoing crisis in the petroleum sector, particularly the suspension of the sale of petroleum products in naira by the Dangote Petroleum Refinery. The organisation warned that the Federal Government’s failure to provide clear information on the status of local refining and crude supply is fueling economic instability and worsening hardship for Nigerians.
In a statement on Tuesday, AAN’s Country Director, Andrew Mamedu, criticised the Federal Government’s handling of the situation, stating that the suspension of the naira-for-crude arrangement has led to panic buying, hoarding, and speculative price hikes. “The Federal Government must immediately explain why the naira-for-crude arrangement has been abandoned despite its initial promise to stabilise fuel prices and increase local refining capacity,” Mamedu said. “It is unacceptable for citizens to suffer the consequences of policy inconsistencies while a select few benefit from opaque crude oil transactions.”
Mamedu also questioned the Nigerian National Petroleum Company Limited’s (NNPCL) preference for importing Premium Motor Spirit (PMS) over supporting local refining. He argued that locally refined fuel, particularly from the Dangote Refinery, is cleaner and more durable, yet it remains sidelined in national fuel distribution. “If NNPCL can seamlessly conduct international transactions, why can’t local refineries access crude in naira under fair terms?” he asked.
He warned that the suspension of the naira-for-crude deal could push more Nigerians into poverty, increase social inequalities, and destabilise the economy. Rising fuel prices, he said, will drive up transportation costs, making it harder for low-income earners to afford daily commutes, access essential services, and sustain small businesses. Sectors such as agriculture, healthcare, and education — all of which depend heavily on petrol and diesel — will also be severely impacted.
Mamedu highlighted the lack of transparency surrounding NNPCL’s crude oil transactions, raising concerns about whose interests are being prioritised. “If local refineries are struggling to access crude in naira while international transactions continue, then fundamental questions must be asked: Is the government prioritising foreign interests over national economic stability?” he questioned.
ActionAid Nigeria called for independent third-party monitoring of crude oil transactions, fuel pricing, and distribution to ensure transparency and accountability. The group demanded a public audit of all crude oil sales, including forward contracts entered into by NNPCL, and the establishment of a transparent mechanism to guarantee that local refineries have priority access to crude oil under fair and stable terms.
“Nigerians cannot continue to be victims of policy inconsistencies, regulatory failures, and corporate profiteering,” Mamedu said, urging the Federal Government to take immediate action to restore public confidence and protect citizens from further economic hardship.
