Refiners push Nigeria to end fuel imports

Etim Ekpimah

The Crude Oil Refinery Owners Association of Nigeria has called on the Federal Government to phase out petroleum product imports and prioritise domestic refining, arguing that Nigeria now has the opportunity to transform from a fuel-importing nation into a major refining and export hub for Africa.

Presenting CORAN’s 10-point agenda at the 3rd Nigeria Oil Refining Summit in Lagos, the association’s Chairman, Momoh Oyarekhua, said petroleum sector reforms should focus on maximising local refining capacity, guaranteeing crude supply to domestic plants and expanding critical infrastructure.

According to him, Nigeria must move beyond the decades-old cycle of exporting crude oil while importing refined products. This model has drained foreign exchange and limited the country’s industrial growth.

“Our crude must increasingly power our refineries. Our refineries must supply our market. And Nigeria must ultimately become a refining hub for Africa,” Oyarekhua said.

At the centre of CORAN’s proposals is a demand for a reliable, commercially viable supply of crude oil to local refineries.

The association noted that despite Nigeria’s vast crude reserves, some domestic refiners still struggle to secure feedstock under favourable terms, limiting their ability to operate efficiently.

Oyarekhua also stressed the need for substantial investment in pipelines, storage facilities and product evacuation infrastructure, describing them as essential to the success of the country’s refining ambitions.

“The country must now support the refineries, pipelines and storage terminals,” he said.

CORAN argued that expanding local refining would deliver benefits beyond fuel production, including job creation, foreign exchange retention, industrial development and stronger linkages with the petrochemical and manufacturing sectors.

“Refining for value means more than producing fuel. It means retaining foreign exchange, creating jobs, developing local expertise, supporting petrochemicals and manufacturing, and capturing greater economic value within Nigeria,” Oyarekhua added.

As part of its agenda, the association called for the full institutionalisation of the Naira-for-Crude policy and the adoption of a domestic crude pricing framework that reflects crude quality, delivery locations and evacuation costs.

The group also urged the government to eliminate petroleum product imports once local refining capacity becomes sufficient to meet domestic demand and produce export surpluses.

To achieve that goal, CORAN proposed long-term financing mechanisms for refinery expansion and upgrades, alongside accelerated investments in pipelines, storage terminals, depots, jetties and rail transportation systems.

The recommendations come amid growing efforts by industry stakeholders to deepen domestic refining, reduce dependence on imported fuel and position Nigeria as a leading supplier of refined petroleum products across Africa.