Olufemi Adewole, Executive Secretary of DAPPMAN, warns that Nigeria’s Naira-for-crude oil transaction framework could destabilize foreign exchange (FX), deter foreign direct investment (FDI), and worsen economic challenges. He highlights the volatility of the Naira and stresses that crude oil transactions traditionally rely on the U.S. dollar for stability and global acceptability. Adewole cautions that deviating from international standards may isolate Nigeria from global markets, reduce trade opportunities, and discourage investment inflows. He also notes that tying crude oil transactions to the Naira could exacerbate inflation, exchange rate instability, and capital flight, further straining Nigeria’s FX reserves. While proponents argue the policy could enhance economic sovereignty, Adewole emphasizes the need for sustainable policies that align with the unique nature of the oil and gas sector to ensure national competitiveness and economic stability.
Nigerian Oil Marketers Denounce Oil De-Dollarization Policy
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