Nigerian Economic Summit Group (NESG) says the federal government’s failure to extend the crude-for-naira deal could undermine the incentives that enabled local refining success in the country.
It could also derail the progress made in reducing petroleum product prices and easing foreign exchange (FX) demand pressures, NESG chief executive officer, Dr. Tayo Aduloju,said.
He spoke at a press conference in Abuja,where he also punctured the government’s move as a setback.
He implored all stakeholders to collaborate in finding a better alternative that serves the country’s economic interests.
He added:“This is not a good development. We should all work together to find a better option that works for Nigeria. In the end, it was Nigerians that were promised these reforms would create a more enabling environment. When it becomes difficult, it almost looks like we forgot what we promised. And that’s not good for the government or the people”.
He spoke on why the NESG supported the crude-for-naira deal,saying it was due to its potential to lower domestic fuel costs and ease FX pressures, provided it did not introduce another form of FX subsidy.
“The policy was good because it lifted the burden on FX demand, allowed transactions to be costed in naira, and had the potential for downward trending of petrol prices in the local market,” he noted.
He also expressed strong support for the transition of the Nigerian National Petroleum Company Limited (NNPC) into a publicly listed entity.
According to him, the development would enhance transparency and align NNPC with international corporate governance standards, ultimately benefiting all Nigerians.
He added:”I have been a strong proponent of taking NNPC public and making it a more transparent Nigerian asset. The more transparent it is, the more it complies with international corporate governance requirements, [and] very likely NNPC will work better for all Nigerians”.
