Refinery owners call for full Naira-for-Crude implementation, stronger domestic crude supply rules, long-term financing and strategic fuel reserves as Nigeria targets greater energy security and regional refining leadership
Nigeria’s crude oil producers, refiners and regulators must move faster to connect the country’s abundant crude resources with domestic refining capacity, the Crude Oil Refinery-Owners Association of Nigeria (CORAN) has said, unveiling a 10-point agenda aimed at expanding local refining, reducing petroleum-product imports and retaining more economic value within the country.
Chairman of CORAN and Chairman of OPAC Refineries, Momoh Jimah Oyarekhua, made the call at the opening of the 3rd Nigeria Oil Refining Summit, where he said Nigeria had reached a critical stage in its petroleum-sector reform.
Oyarekhua said the country could no longer afford a system in which it exports crude oil while importing refined petroleum products, arguing that the next phase of reform must focus on ensuring that Nigerian crude increasingly feeds Nigerian refineries.
“Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost,” Oyarekhua said.
According to him, the objective should be to transform Nigeria from a major crude-producing country into a refining and industrial hub for Africa, with greater domestic value creation, employment, energy security and industrial development.
CORAN’s 10-point refining agenda
At the summit, CORAN proposed a comprehensive policy and investment framework built around 10 priorities.
The association called for the full institutionalisation of Naira-for-Crude, with transparent eligibility and access for qualifying domestic refineries, including modular refineries.
It also proposed a domestic crude pricing template that takes into account crude quality, delivery points, avoided international logistics costs and actual domestic evacuation expenses.
CORAN further urged stronger enforcement of the Domestic Crude Supply Obligation under Section 109 of the Petroleum Industry Act, while maintaining commercially workable arrangements between crude producers and refiners.
Another proposal is the expansion of crude swaps and proximity-based supply arrangements, allowing crude-producing assets located near domestic refineries to supply those facilities without unnecessary movement through distant export infrastructure.
The association also called for the progressive reduction of petroleum-product imports, with imports increasingly limited to objectively established domestic supply gaps and strategic-stock requirements.
To support investment in new and expanding refineries, CORAN proposed a Refinery Development Financing Framework offering long-tenor financing, guarantees and refinancing mechanisms.
The agenda also includes the development of shared petroleum-product infrastructure, including pipelines, depots, storage terminals, jetties, rail evacuation systems and other common-carrier facilities.
CORAN wants Nigeria to establish strategic petroleum-product reserves capable of cushioning temporary refinery shutdowns, maintenance periods and international supply disruptions.
The association further called for regulatory and fiscal incentives for refinery expansion, particularly investments in conversion units that can increase domestic production of petrol, aviation fuel, LPG and other essential petroleum products.
The final element of the agenda is a clear national domestic refining roadmap, with measurable targets for refining capacity, domestic market share, petroleum-product imports and eventual export capacity.
Local refining gaining momentum
Oyarekhua acknowledged the progress recorded in Nigeria’s domestic refining industry, saying growing local refining activity is beginning to alter the country’s petroleum supply landscape.
He, however, noted that significant obstacles remain, particularly the ability of some domestic refineries to obtain crude oil on commercially viable terms.
The situation, he said, creates a paradox in which Nigeria possesses substantial crude resources while domestic refining capacity can remain underutilised and petroleum-product imports continue.
For CORAN, the issue extends beyond fuel supply.
Oyarekhua said refining crude domestically should be viewed as a mechanism for foreign-exchange retention, job creation, skills development, industrialisation and the growth of petrochemicals and manufacturing.
“Refining for value means more than producing fuel,” he said, stressing that the country must capture a larger share of the economic value generated from its petroleum resources.
From crude exporter to African refining hub
The CORAN chairman said Nigeria had already taken the difficult step of reforming the petroleum-products market and that the next phase required equally decisive action across the value chain.
“Support the refinery. Support the pipeline. Support the storage terminals,” he said.
He argued that a successful domestic refining ecosystem would require coordinated action among crude producers, regulators, refiners, marketers, financiers, host communities and the media.
The proposed approach, according to CORAN, is intended to create stronger links between upstream crude production and downstream petroleum demand.
“Our crude must increasingly power our refineries. Our refineries must increasingly supply our market. And Nigeria must ultimately become a refining hub for Africa,” Oyarekhua said.
Beyond speeches and communiqués
Oyarekhua challenged participants at the two-day summit to focus on practical commitments rather than allowing the gathering to end with another industry communiqué.
He urged stakeholders to pursue measurable actions capable of moving Nigerian crude closer to domestic refineries and domestic refineries closer to consumers.
“Every barrel refined in Nigeria means more jobs for our people, more opportunities for our businesses, more value retained in our economy, and greater energy security for our future,” he said.
The CORAN chairman said the outcome of the summit should ultimately be measured by the extent to which stakeholders can overcome fragmentation across the petroleum value chain and build durable partnerships around domestic refining.
He said Nigeria already possesses the crude resources, domestic market, investors, producers, regulators and refiners required to build a stronger refining industry, but needs greater coordination to connect those assets.
“If we succeed, Nigeria will not merely be a major producer of crude oil. We will become a leading refining and industrial powerhouse, creating prosperity from our resources and opportunities for generations to come,” he said.
Oyarekhua said the association’s desired outcome could be summed up in four objectives: refine more, import less, create more value and create more jobs.
He called on stakeholders to work towards transforming Nigerian crude into greater domestic prosperity and strengthening the country’s position in Africa’s petroleum and energy markets.
The 3rd Nigeria Oil Refining Summit brings together industry stakeholders to deliberate on the future of domestic refining, crude supply, petroleum-product security, investment, infrastructure and Nigeria’s evolving downstream petroleum sector.
