Nigerian Refinery Owners Urge Halt to Fuel Imports, Push for Export Ambition

The Crude Oil Refinery-Owners Association of Nigeria (CORAN) has issued a strong appeal to the Federal Government to cease the importation of petroleum products, advocating instead for Nigeria to fully leverage its domestic refining capacity and emerge as a significant exporter of refined crude across Africa.

This call was made by Momoh Oyarekhua, the Chairman of CORAN, during his presentation of the association’s ten-point agenda at the 3rd Nigeria Oil Refining Summit. The event took place on Monday at the Eko Hotel in Lagos. Oyarekhua emphasized that reforms within the petroleum sector must prioritize the optimization of existing refineries, enhance crucial infrastructure, and foster an refining industry geared towards export.

“For many decades, Nigeria operated on a model where we exported our crude oil only to import refined products. Today, we at CORAN are actively changing this narrative, ensuring that our nation’s natural resources directly contribute to job creation, industrial growth, energy security, and overall prosperity for Nigerians,” Oyarekhua stated. He further stressed, “Our crude must increasingly fuel our refineries. These refineries must, in turn, supply our domestic market. Ultimately, Nigeria must evolve into a refining powerhouse for the entire African continent. This should be the ultimate goal of our petroleum-sector reforms.”

Oyarekhua also highlighted the critical need for domestic refineries to have consistent and reliable access to crude oil to operate at peak efficiency. He also called for substantial investments in pipelines and storage infrastructure. “Despite our abundant crude resources, some local refineries still struggle to secure crude oil under commercially viable terms,” he noted. He added, “The country must now actively support the refineries, the pipelines, and the storage terminals.”

According to Oyarekhua, boosting domestic refining will lead to significant job creation, help retain foreign exchange, and provide crucial support for the petrochemical and manufacturing sectors. He articulated, “Refining for value extends beyond merely producing fuel. It encompasses retaining foreign exchange, generating employment opportunities, cultivating local expertise, bolstering our petrochemical and manufacturing industries, and ultimately capturing greater economic value within Nigeria.”

Among the key proposals in CORAN’s agenda are the full institutionalization of the Naira-for-Crude initiative and the establishment of a domestic crude pricing template that considers crude quality, delivery points, and local evacuation costs. The association also pushed for the complete elimination of petroleum product imports once domestic refining capacity is sufficient to meet national demand and generate surpluses for export. Additionally, CORAN proposed long-term financing and refinancing mechanisms for refinery expansion and upgrades, alongside the accelerated development of essential infrastructure such as pipelines, storage terminals, depots, jetties, and rail evacuation systems.