Call For Action: Extend The Naira-for-Crude Deal To Protect Nigerians From Fuel Price Hikes

Why Extending the Naira-for-Crude Deal Matters

The Human Rights Writers Association of Nigeria (HURIWA) has issued a strong call to President Bola Tinubu, urging him to extend the naira-for-crude deal between the Nigerian National Petroleum Company Limited (NNPCL) and local refineries, including the massive Dangote Refinery. This deal, if allowed to expire, could spell disaster for millions of Nigerians already grappling with economic hardships. The stakes are high, and the potential ripple effects on everyday lives could be devastating.

The Warning: A Surge in Fuel Prices

HURIWA has sounded the alarm, warning that letting the naira-for-crude deal lapse could trigger a significant increase in fuel prices. This would only deepen the economic struggles faced by millions of Nigerians, making life even harder for those who are already barely getting by. With the expiration date looming, the pressure is on for the government to act swiftly and decisively.

In a statement issued on Monday, HURIWA’s National Coordinator, Emmanuel Onwubiko, made a heartfelt plea to President Tinubu. He urged the president to direct his economic team to renegotiate and sustain this vital deal. Onwubiko emphasized that maintaining the agreement could ease the financial burden on struggling households and businesses across the country. The stakes couldn’t be higher, especially during a time when Nigerians are already feeling the pinch.

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“In the spirit of the Sallah celebrations and the public shows of devotion by leaders during the fasting and Lent period, we are praying President Tinubu to direct his Coordinating Minister for the Economy and the Minister of Finance to transparently and rapidly reach an agreement to continue the naira-to-crude deal with local crude oil refineries, including the Dangote Petroleum refinery,” Onwubiko stated. The urgency in his words reflects the gravity of the situation.

The Impact: Hardship for the Average Nigerian

HURIWA’s appeal is not just a formality; it’s a cry for action to prevent the suffering of millions. “We make this public supplication and appeal because any alteration to this deal would mean excruciating hardships and the massive affliction of poverty on millions of the already suffering, struggling, and multidimensionally poor households,” the statement read. The group is painting a clear picture of what’s at stake here. Without the naira-for-crude deal, the economic burden on Nigerians would become unbearable.

The naira-for-crude arrangement, which began in October 2024 and was set to expire on March 31, 2025, allowed local refineries to receive crude oil from NNPCL while making payments in naira. Oil marketers have already warned that if the deal isn’t renewed, petrol prices could skyrocket, further straining the already fragile economy. The potential consequences are alarming, and the Tinubu administration is being urged to take immediate action.

Onwubiko’s Warning: A Domino Effect on Small Businesses

Emmanuel Onwubiko further warned that higher fuel costs could force many small businesses, especially those dependent on petrol-powered generators, to shut down. This would lead to widespread job losses and exacerbate the already alarming levels of poverty in the country. The ripple effects of such a decision could be catastrophic, impacting not just businesses but entire communities.

HURIWA reminded President Tinubu that the failure to sustain the naira-for-crude deal could result in the closure of hundreds of thousands of small and medium-scale businesses. This would inevitably lead to the dismissal of thousands of private sector workers, throwing even more Nigerians into unemployment and poverty. “HURIWA told President Bola Ahmed Tinubu that our assessment of the public perception of the failure to keep the implementation of the naira-to-crude deal showed that more Nigerians would be thrown out of work,” the statement highlighted.

The Broader Picture: A Nation in Need

HURIWA argued that the segment of society most affected by this potential decision are the over 133 million Nigerians classified as multidimensionally poor, according to the 2018 statistical data from the National Bureau of Statistics. The rising cost of living has already pushed many Nigerians into poverty, and the expiration of the naira-for-crude deal could make matters worse.

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Citing reports from the World Bank and the National Bureau of Statistics, HURIWA noted that over 133 million Nigerians are already classified as multi-dimensionally poor. The group emphasized that the economic realities faced by these individuals are dire and require urgent attention. “HURIWA argued basically that the most affected segment of the society are the over 133 million multidimensionally poor households,” the statement added.

A Call for Swift Action

HURIWA has made it clear that the Tinubu administration must act quickly to address these pressing economic issues. Failure to do so could push millions of Nigerians into even deeper financial hardship, widening the poverty gap and undermining the nation’s progress. The group’s appeal is a reminder of the responsibility that comes with leadership and the importance of making decisions that prioritize the well-being of all citizens.