The Chairman of the Crude Oil Refinery Owners Association of Nigeria, CORAN, Mr. Momoh Oyarekhua, has urged Nigeria to move from exporting crude oil and importing refined products to refining its own crude for its own prosperity. Speaking at the 3rd Nigeria Oil Refining Summit in Lagos on Monday, Oyarekhua said the country has reached a defining moment in its energy security and economic growth. He emphasized that discussions have evolved from making Nigeria a net exporter of products to strengthening Africa’s energy security.
Oyarekhua noted that despite Nigeria's abundant crude resources, some domestic refineries continue to face difficulties accessing crude oil on commercially viable terms. At the same time, fuel imports persist while local refining capacity remains underutilized. He stressed that refining for value means more than producing fuel, as it also means retaining foreign exchange, creating jobs, developing local expertise, supporting petrochemicals, and manufacturing.
CORAN is proposing a 10-point agenda for the government and regulators to address the gap between upstream supply and downstream demand. The agenda includes the full institutionalization of Naira-for-Crude, with transparent eligibility for all qualifying refineries, including modular plants. Additionally, a domestic crude pricing template that recognizes crude quality, delivery point, avoided international logistics costs, and actual evacuation expenses is proposed.
The proposed agenda also includes strengthened enforcement of the Domestic Crude Supply Obligation under Section 109 of the PIA, while preserving workable commercial deals. Furthermore, crude swaps and proximity-based supply are suggested, allowing producers close to local refineries to supply them directly instead of trucking crude to distant export terminals. Oyarekhua emphasized that these measures can help reduce product imports and promote local refining.
Oyarekhua called for a progressive reduction of product imports, restricting imports only to objectively determined shortfalls and strategic stock needs. He also proposed a Refinery Development Financing Framework with long-tenor financing, guarantees, and refinancing for new builds and expansions. Moreover, shared product infrastructure, such as pipelines, depots, storage terminals, jetties, and rail, are suggested as common-carrier facilities.
The CORAN chairman emphasized that Nigeria should not continue exporting crude, exporting jobs, and importing the same petroleum products at considerable economic cost. He urged for partnership among producers, regulators, refiners, marketers, financiers, and host communities to solve the country's energy security challenges. Oyarekhua charged delegates to leave with a clear resolve to do one thing that moves Nigerian crude closer to Nigerian refineries and Nigerian refineries closer to the needs of Nigerians.
Oyarekhua concluded that every barrel refined in Nigeria means more jobs for the people, more opportunities for businesses, more value retained in the economy, and greater energy security for the future. He urged Nigerians to commit to refining more, importing less, creating more value, and building a stronger Nigeria. The next stage of reforming the petroleum-products market must be equally bold, he added.
Key points
- CORAN proposes a 10-point agenda to address the gap between upstream supply and downstream demand.
- Nigeria urged to stop exporting crude and importing refined products at huge cost.
- Refining for value means more than producing fuel, as it also means retaining foreign exchange, creating jobs, and supporting petrochemicals and manufacturing.
