Manufacturers Demand Naira-for-Crude Optimization and CNG Subsidies to Halt National Deindustrialization Risks

The Manufacturers Association of Nigeria warns that fuel imports cause deindustrialization, urging the government to optimize Naira-for-crude policies instead.

By: AXL Media

Published: Apr 17, 2026, 9:35 AM EDT

Source: Information for this report was sourced from LEADERSHIP News

The Case Against Reinstating Petrol Import Licenses

The Manufacturers Association of Nigeria has issued a stern warning against returning to a heavy reliance on imported premium motor spirit, labeling such a move a recipe for national economic retrogression. Segun Ajayi-Kadir, the director-general of the association, argued that reopening the doors to foreign fuel imports would effectively undermine the country’s industrialization goals and stall progress made by local refineries. According to Ajayi-Kadir, the government should ignore short-term fixes that expand trade deficits and instead focus on fortifying the domestic energy market to ensure long-term stability for both industrial players and everyday consumers.

Optimizing the Naira-for-Crude Transaction Framework

Central to the association’s proposal is the refinement of the current policy allowing the sale of crude oil to local refineries in the national currency. While the organization views this shift as a vital step toward economic sovereignty, Ajayi-Kadir stressed that the execution remains far from perfect. He called for an immediate increase in transparency regarding domestic pricing and the removal of bureaucratic delays that currently hinder the consistent supply of crude to facilities like the Dangote Refinery. Ensuring that local refiners have seamless access to raw materials in Naira is seen as a critical lever for reducing the unit cost of production across the manufacturing sector.

Accelerating the Transition to Compressed Natural Gas

To address the high costs of logistics and transportation that drive inflation, the association is pushing for a rapid expansion of the Presidential Compressed Natural Gas Initiative. The proposal involves the government providing substantial subsidies to help commercial and industrial enterprises convert their transport fleets to CNG. According to the director-general, moving away from expensive liquid fuels for logistics would provide an immediate cushion against rising prices for consumer goods. This transition is framed not just as a cost-saving measure, but as a strategic pivot toward a more sustainable and resilient energy landscape for the nation’s supply chains.