Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), has cautioned that Nigeria’s Naira-for-crude oil transactions could destabilise foreign exchange reserves and deter foreign investment.
He stressed that global oil trades rely on the US dollar’s stability, and deviating from this norm might isolate Nigeria, reduce trade opportunities, and trigger capital flight. “The Naira’s volatility, driven by inflation and erratic exchange rates, makes it unfit for oil transactions. This policy risks exacerbating economic pressures,” he said.
Adewole warned of parallels with Venezuela’s failed attempt to replace the dollar with its local currency, which led to economic collapse. While proponents argue the move could strengthen the Naira, he urged policies prioritising long-term sustainability over short-term sovereignty gains.
“The CBN may struggle to stabilise the Naira if dollar inflows from oil sales decline,” he added, noting that Nigeria must balance national interests with global market realities.
DAPPMAN called for pragmatic reforms to safeguard FX reserves, attract investment, and ensure sector competitiveness. “Policies must benefit the broader economy—not just select players,” he concluded.
