Naira-for-Crude pricing concerns grow as MAN urges transparency, steady crude supply and reforms to lower production costs

The Manufacturers Association of Nigeria has called on the Federal Government to enforce full transparency in the implementation of the Naira-for-Crude policy, warning that inefficiencies and bottlenecks could weaken its economic impact.

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Speaking in Lagos, the Director-General of MAN, Segun Ajayi-Kadir, said the policy represents a significant structural reform capable of strengthening Nigeria’s industrial and energy sectors if properly executed.

Segun Ajayi-Kadir stressed the need for a transparent domestic pricing framework and uninterrupted allocation of crude oil to local refineries without administrative delays.

“The Federal Government should mandate total transparency in the domestic pricing matrix and ensure that local refineries receive their full, unhindered daily crude quotas without bottlenecks,” he said.

According to the MAN chief, the broader economic gains expected from the policy must extend beyond refineries to consumers and the productive sector.

The Naira-for-Crude pricing debate has intensified in recent months as stakeholders continue to assess the effectiveness of the initiative in reducing inflationary pressures and stabilising fuel supply.

Segun Ajayi-Kadir also urged the government to accelerate implementation of the Presidential Compressed Natural Gas Initiative through substantial subsidies for commercial and industrial vehicle conversions to compressed natural gas.

He explained that transportation and logistics costs remain major contributors to inflation and argued that increased adoption of locally available CNG could significantly lower operating expenses across industries.

The MAN director-general further called for the removal of several supply-side constraints affecting manufacturers, including reforms to the National Single Window platform and the elimination of the four per cent Free-On-Board levy.

He also advocated wider access to single-digit credit facilities to support production and reduce operational costs for businesses.

On energy infrastructure, Segun Ajayi-Kadir warned that reliance on costly liquid fuels for industrial power generation continues to raise manufacturing expenses across the country.

He called for urgent reforms to the national electricity grid and stronger incentives for renewable off-grid energy projects within industrial clusters.

The manufacturing sector leader also cautioned that Nigeria’s continued dependence on imported fuel leaves the economy vulnerable to geopolitical disruptions and external market shocks.

According to him, sustainable price stability can only be achieved through stronger domestic refining capacity, local energy production and long-term self-sufficiency.

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Segun Ajayi-Kadir concluded that Nigeria should prioritise practical local solutions capable of strengthening economic resilience instead of depending on fuel imports as a temporary response to inflation.