Nigerian refinery owners urge government to end avoidable fuel imports

The Crude Oil Refinery-Owners Association of Nigeria has urged the Federal Government to end unnecessary imports of petroleum products and focus on expanding domestic refining capacity. CORAN chairman Momoh Oyarekhua made the call while presenting the association’s 10-point agenda at the third Nigeria Oil Refining Summit in Lagos on Monday. Oyarekhua said petroleum-sector reforms should prioritise the optimisation of existing refineries, improved infrastructure and the creation of an export-oriented refining industry.

He said Nigeria should move from exporting crude and importing refined products to using its crude to supply domestic refineries. He said the association’s objective was for refineries to serve the Nigerian market and ultimately make the country a refining hub for Africa. According to him, greater domestic refining would support employment, industrial growth, energy security and wider economic prosperity.

The CORAN chairman said some domestic refineries continued to struggle to obtain crude on commercially viable terms. He called for government support for refineries, pipelines and storage terminals, alongside greater investment in depots, jetties and rail evacuation systems. The association also proposed the full institutionalisation of the Naira-for-Crude initiative and a domestic crude-pricing template that would account for crude quality, delivery points and domestic evacuation costs.

CORAN called for long-term financing and refinancing arrangements to support refinery expansion and upgrades. It said imports should be eliminated once domestic plants can meet national demand and produce surpluses for export. Oyarekhua said increased refining would retain foreign exchange in Nigeria, create jobs, build local technical expertise and support petrochemical and manufacturing industries.