The Crude Oil Refinery-Owners Association of Nigeria (CORAN) has called for Nigeria to move beyond its reliance on imported petroleum products and focus on capacity optimization, domestic value creation, infrastructure development, and export-led growth. This was stated by CORAN Chairman, Momoh Jimah Oyarekhua, at the 3rd Nigeria Oil Refining Summit in Lagos. He emphasized that Nigeria's petroleum landscape has changed with the emergence of domestic refining capacity, creating opportunities for the country to maximize its refining assets and develop significant export capacity.
Oyarekhua unveiled a 10-point policy agenda aimed at optimizing Nigeria's domestic refining capacity and positioning the country as a net exporter of refined petroleum products. The agenda includes ensuring that existing and emerging refineries operate efficiently and at optimal capacity, supported by adequate crude supply, competitive pricing, financing, and evacuation infrastructure. He stressed that Nigeria's refining ambition must extend beyond satisfying domestic consumption and that the country has the potential to become a significant exporter of refined petroleum products.
According to Oyarekhua, the next phase of petroleum-sector reform should focus on ensuring that domestic refineries have access to crude, infrastructure, and an operating environment that enables them to optimize installed capacity. He noted that Nigeria should not continue to export crude, export jobs, and import petroleum products at considerable economic cost. Instead, the country should convert its crude resources into finished products locally, retaining more value within the economy while creating employment and generating new export earnings.
CORAN proposed a 10-point agenda for strengthening the country's domestic refining ecosystem. The agenda includes the full institutionalization of Naira-for-Crude, a domestic crude pricing template, and strengthened enforcement of the Domestic Crude Supply Obligation. The association also called for crude swaps and proximity-based supply arrangements, allowing crude-producing assets to supply domestic refineries without unnecessary movement through distant export infrastructure.
The association also proposed the elimination of petroleum-product imports as domestic refining capacity becomes capable of meeting national demand. CORAN suggested a Refinery Development Financing Framework providing long-tenor financing, guarantees, and refinancing mechanisms for refinery expansion, upgrades, and new refinery construction. Additionally, the association advocated for accelerated development of shared petroleum-product infrastructure, such as pipelines, depots, and storage terminals.
Oyarekhua stressed that Nigeria's priority should not simply be the announcement of additional refining capacity but ensuring that available capacity is fully utilized. He noted that reliable access to crude oil remains central to achieving this objective and that domestic refineries cannot be expected to operate efficiently or compete internationally if they struggle to obtain their principal feedstock on commercially sustainable terms.
The CORAN chairman called for policies that encourage expansion and upgrading of existing facilities, enabling refiners to improve product yields and produce more PMS, aviation fuel, LPG, and other products required domestically and across African markets. He emphasized that refining for value means more than producing fuel, as it also means retaining foreign exchange, creating jobs, developing local expertise, and capturing greater economic value within Nigeria.
Key points
- CORAN Chairman, Momoh Jimah Oyarekhua, emphasized the need for Nigeria to optimize its domestic refining capacity and become a net exporter of refined petroleum products.
- The association proposed a 10-point agenda for strengthening the country's domestic refining ecosystem.
- Oyarekhua stressed that Nigeria's priority should be ensuring that available refining capacity is fully utilized.
