Revealed! Depot owners condemn naira-for-crude deal

• The Federal Government's merchantability of crude lipid to the Dangote Petroleum Refinery successful naira was criticized by depot owners
• According to their enforcement secretary, the naira-for-crude-oil transaction operation carries important risks
• He warned that Nigeria would beryllium unopen disconnected from planetary markets if it didn't travel this planetary standard

Legit.ng writer Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, has criticised the Federal Government's naira-based merchantability of crude lipid to the Dangote Petroleum Refinery.

Depot owners springiness reasons arsenic they criticised naira-for-crude deal
Source: Getty Images

Adewole asserted that determination are superior dangers associated with the naira-for-crude lipid transaction structure, which mightiness person an interaction connected Nigeria's overseas speech stableness and discourage overseas nonstop investment.

In a connection connected Monday, Adewole expressed concerns astir the volatility of the naira and emphasized that crude lipid transactions were traditionally conducted successful US dollars owed to its stableness and planetary acceptability.

This comes arsenic the Dangote refinery suspended the merchantability of gasoline successful naira due to the fact that the Federal Government allegedly refused to merchantability much crude successful naira to the facility.

How Depo owners react

Adewole issued a informing that if Nigeria doesn't conform to this planetary norm, it whitethorn beryllium chopped disconnected from planetary markets, which would trim commercialized prospects and deter foreign investment.

“The planetary lipid marketplace operates successful US dollars owed to its stability. Continuing the argumentation could alienate commercialized partners and investors who trust connected the predictability of the dollar,” helium stated.

Adewole emphasized that successful bid to support nationalist competitiveness, argumentation indispensable admit the peculiar characteristics of the lipid and state industry.

Reactionary policies, helium pointed out, often supply disproportionate economical gains that favour a tiny fig of manufacture participants implicit the wide economy.

Adewole claimed that linking crude lipid transactions to the naira mightiness marque these issues worse, citing the currency's humanities instability brought connected by inflationary pressures and volatile speech rates.

“The naira has experienced important fluctuations implicit the years, driven by ostentation and speech complaint instability. If crude lipid transactions are linked to the naira, these issues volition lone worsen, perchance triggering superior formation and causing overseas investors to question alternate markets. This would negatively interaction Nigeria’s economical growth, the sustainability of the sector, and the ratio of the lipid and state worth chain,” the DAPPMAN brag argued.

He further warned that the naira-for-crude trades could make an unsustainable unit connected Nigeria’s overseas speech reserves.

He underlined that the Central Bank of Nigeria might conflict to support currency stableness with insufficient dollar inflows, resulting to further economical strain.

“It is astir inevitable that implementing this argumentation could further deplete Nigeria’s overseas speech reserves. The CBN whitethorn find it progressively hard to stabilise the naira owed to inadequate dollar inflows. Given that lipid transactions person historically been a superior root of foreign exchange, disrupting this mechanics volition apt intensify economical pressures,” helium explained.

Petrol imports deed 154 cardinal litres play

Legit.ng reported that astir 7 vessels carrying imported petrol are expected to dock astatine seaports betwixt Monday, March 17 and 23, 2025.

This is according to a papers from the Nigerian Ports Authority released connected Thursday, 20, 2025, revealing that the vessels are carrying 115,000 metric tonnes, representing 154.22 cardinal litres of petrol.

These vessels volition bring the products via 3 seaports successful Nigeria to boost substance proviso nationwide.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng