Reps Pledge Tight Oversight of Crude-for-Naira Initiative

The House of Representatives has pledged strict monitoring of the Federal Government’s newly introduced crude-for-naira programme, assuring Nigerians that the scheme will not be allowed to fall into the pitfalls that undermined similar policies in the past. Lawmakers made it clear that their oversight role would be exercised fully to ensure transparency, accountability, and tangible economic benefits for citizens.

The crude-for-naira initiative is one of the government’s latest responses to Nigeria’s foreign exchange crisis. Under the programme, crude oil will be allocated to trading partners in exchange for naira payments deposited directly into government accounts, rather than being settled in foreign currencies. The aim is to ease pressure on the naira, conserve foreign reserves, and create a more stable fiscal environment. The policy also seeks to reduce Nigeria’s over-reliance on the dollar for oil-related transactions, which has contributed to exchange rate volatility.

During a plenary session, lawmakers expressed cautious optimism about the programme. They acknowledged its potential to stabilise the economy but warned that it could also expose the country to new risks if not properly managed. Several members cited past experiences with crude-for-cash and crude-for-product swaps, which were riddled with corruption, inefficiencies, and poor documentation. These arrangements often left the country with revenue shortfalls and unaccounted barrels of oil.

The Speaker of the House stressed that the legislature would not allow a repeat of such failures. He declared that Nigerians must see clear evidence of benefits, including reduced inflation, improved access to goods, and more stable economic growth. He also underscored the importance of full disclosure, stating that all allocations, payments, and beneficiaries must be made public and reported to the National Assembly.

To ensure robust monitoring, the House announced that key committees—including those on petroleum, finance, and public accounts—will jointly supervise the programme’s implementation. Lawmakers plan to demand periodic reports from relevant ministries, the Nigerian National Petroleum Company Limited (NNPC Ltd.), and other agencies involved in the scheme. They also hinted that they would not hesitate to summon officials for questioning if any irregularities are detected.

Industry experts have reacted to the development with a mixture of support and caution. Some analysts argue that the crude-for-naira programme could provide Nigeria with a steady stream of revenue insulated from the vagaries of the foreign exchange market. By directly linking crude oil to naira payments, they note, the policy could strengthen fiscal stability and reduce speculative attacks on the local currency.

However, others warn that the scheme could easily be derailed if governance lapses persist in the oil sector. They stress the need for airtight accountability mechanisms, strong auditing systems, and real-time monitoring to prevent leakages. They also recommend that the government avoid over-concentration on a single policy tool, insisting that the crude-for-naira programme must complement broader economic reforms such as tax expansion, industrial diversification, and debt sustainability.

Civil society organisations have called for even greater transparency. Some groups have proposed that the government develop a publicly accessible online dashboard that tracks crude-for-naira transactions in real time. They argue that such visibility would not only strengthen public trust but also serve as a deterrent to potential abuse.

The Nigerian Extractive Industries Transparency Initiative (NEITI) has also joined the conversation, urging the government to adopt its reporting templates for the programme. NEITI maintains that aligning the policy with international transparency standards would enhance Nigeria’s credibility and reassure global partners that the initiative is not a disguised return to opaque oil deals.

Within the oil industry, reactions remain measured. Indigenous operators say the policy could create opportunities for local players to participate in crude trading, provided that allocations are equitably shared. They cautioned, however, that past programmes often favoured a small group of politically connected companies, sidelining smaller businesses. For the policy to succeed, they insist, the government must ensure fair access and avoid elite capture.

Meanwhile, economists argue that the programme could help stabilise the naira only if coupled with structural reforms. They warn that without curbing inflation, improving power supply, and reducing Nigeria’s import dependence, the benefits of the crude-for-naira arrangement may be limited. In their view, it must be seen as part of a broader strategy to diversify the economy and not merely a quick-fix solution.

Some lawmakers echoed this sentiment, cautioning that the scheme should not replace or overshadow other fiscal reforms being pursued by the Federal Government. Instead, they argued, it should complement ongoing efforts to strengthen revenue collection, reduce budget deficits, and manage public debt more sustainably.

The House concluded its deliberations by reaffirming its commitment to place national interest above all else. Lawmakers pledged to guard against mismanagement, ensure transparency, and hold all stakeholders accountable. They expressed confidence that with proper oversight, the crude-for-naira initiative could become a landmark policy that helps restore economic confidence, strengthen the currency, and protect Nigeria’s resources for the benefit of its citizens.

As Nigerians watch closely, expectations are high that this latest intervention will not follow the path of previous oil-related schemes that failed to deliver. The responsibility now lies with both the executive and legislature to ensure that the crude-for-naira programme achieves its objectives, demonstrating that public resources can indeed be managed effectively and transparently in the interest of the people.