The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has cautioned the Federal Government about the potential economic risks associated with the Naira-for-crude oil transaction policy. According to Olufemi Adewole, the Association’s Executive Secretary, the policy could negatively impact Nigeria’s foreign exchange stability and deter Foreign Direct Investment (FDI), ultimately isolating the country from the global oil market.
Adewole highlighted concerns regarding the volatility of the Naira, pointing out that crude oil transactions are traditionally conducted in U.S. dollars due to its stability and universal acceptability. He warned that maintaining this policy could drive away investors and trade partners who rely on the predictability of the dollar.
He further emphasized that Nigeria must adopt economic policies that support sustainable growth while ensuring alignment with international market realities. Citing Venezuela’s unsuccessful attempt to transition to local currency transactions for oil sales in the early 2000s, he urged caution in implementing the policy.
Source: OrientalNewsNG
