Crude Oil Refinery-Owners Association of Nigeria (CORAN) has emphasised that Nigeria must move beyond its longstanding dependence on imported petroleum products and focus on capacity optimisation, domestic value creation, infrastructure development and export-led growth.

Chairman of the Association, Momoh Jimah Oyarekhua, stated this yesterday at the 3rd Nigeria Oil Refining Summit held in Lagos, where he unveiled a 10-point policy agenda aimed at optimising the country’s domestic refining capacity and positioning Nigeria as a net exporter of refined petroleum products.

Oyarekhua said the emergence and expansion of domestic refining capacity had fundamentally altered Nigeria’s petroleum landscape, creating an opportunity for the country to maximise its refining assets, meet domestic requirements and develop significant export capacity.

According to him, the next phase of petroleum-sector reform should concentrate on ensuring that existing and emerging refineries operate efficiently and at optimal capacity, supported by adequate crude supply, competitive pricing, financing and evacuation infrastructure.

“For decades, Nigeria exported crude oil and imported refined products. Today, we in CORAN have changed that story by ensuring that our natural resources create jobs, industrial growth, energy security and prosperity for Nigerians.

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

“That should be the destination of petroleum-sector reform,” he said.

The CORAN chairman said Nigeria’s refining ambition must now extend beyond satisfying domestic consumption, arguing that the country possesses the crude resources, refining assets, market, private-sector investment and strategic geographical position required to become a significant exporter of refined petroleum products.

He said the immediate challenge was to ensure that domestic refineries had access to crude, infrastructure and an operating environment that would enable them to optimise installed capacity.

Oyarekhua said the objective should be to maximise Nigerian refining capacity, eliminate unnecessary petroleum-product imports, develop surplus production and export refined products to regional and international markets.

“Nigeria should not continue exporting crude, exporting jobs and importing the same petroleum products at considerable economic cost,” he said.

He added that Nigeria should increasingly convert its crude resources into finished products locally, retaining more value within the economy while creating employment, strengthening manufacturing and generating new export earnings.

To achieve this, CORAN proposed a 10-point agenda for strengthening the country’s domestic refining ecosystem.

The association called, first, for the full institutionalisation of Naira-for-Crude, with transparent eligibility and access for qualifying domestic refineries, including modular refineries.

Second, it proposed a domestic crude pricing template that recognises crude quality, delivery points, avoided international logistics costs and actual domestic evacuation expenses.

Third, CORAN called for strengthened enforcement of the Domestic Crude Supply Obligation under Section 109 of the Petroleum Industry Act, while preserving commercially workable arrangements between crude producers and refiners.

Fourth, it proposed crude swaps and proximity-based supply arrangements, allowing crude-producing assets located close to domestic refineries to supply those facilities without unnecessary movement through distant export infrastructure.

Fifth, CORAN called for the elimination of petroleum-product imports as domestic refining capacity becomes capable of meeting national demand, ensuring that Nigerian refineries are given the opportunity to supply the domestic market and develop production surpluses for export.

Sixth, the association proposed a Refinery Development Financing Framework providing long-tenor financing, guarantees and refinancing mechanisms for refinery expansion, upgrades, optimisation and new refinery construction.

Seventh, it called for accelerated development of shared petroleum-product infrastructure, particularly pipelines, depots, storage terminals, jetties, rail evacuation systems and other common-carrier facilities.

Eighth, CORAN proposed the establishment of strategic petroleum-product reserves to provide supply security during scheduled refinery maintenance, temporary operational disruptions or other emergencies.

Ninth, the association advocated regulatory and fiscal incentives for refinery optimisation and expansion, particularly investments in conversion units capable of increasing domestic production of Premium Motor Spirit (PMS), aviation fuel, Liquefied Petroleum Gas (LPG) and other high-value petroleum products.

Tenth, it called for a national refining and export roadmap, with measurable targets for capacity utilisation, refinery expansion, domestic market supply, elimination of petroleum-product imports and growth in refined-product exports.

Oyarekhua stressed that Nigeria’s priority should not simply be the announcement of additional refining capacity but ensuring that available capacity is fully utilised.

He said reliable access to crude oil remained central to achieving this objective, noting that domestic refineries could not be expected to operate efficiently or compete internationally if they struggled to obtain their principal feedstock on commercially sustainable terms.

“Despite our abundant crude resources, some domestic refineries continue to face difficulties accessing crude oil on commercially viable terms,” he said.

He said stronger alignment between Nigeria’s upstream production and downstream refining capacity would enable the country to extract significantly greater economic value from every barrel of crude produced.

The CORAN chairman also 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.

Oyarekhua said the emergence of substantial domestic refining capacity should mark a decisive turning point in Nigeria’s petroleum-products market.

Rather than continuing to accommodate imports as a permanent feature of the market, he said policy should now be directed towards ending petroleum-product imports and creating the conditions for Nigerian refineries to compete for export markets.

“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,” he said.

He, however, stressed that an export-oriented refining industry could not be built around refineries alone, noting that Nigeria required an efficient network of pipelines, storage facilities, jetties, depots, rail systems and other evacuation infrastructure capable of moving refined products efficiently to domestic and export markets.

“Nigeria has already taken the difficult decision to reform the petroleum-products market. The next stage must be equally bold.

“The country must now support the refinery. Support the pipeline. Support the storage terminals,” he said.

According to him, developing the infrastructure would reduce logistics costs, improve refinery competitiveness and strengthen Nigeria’s ability to serve markets across West and Central Africa and beyond.

Oyarekhua urged closer collaboration among crude producers, refiners, regulators, marketers, financiers, investors, host communities and the media to deliver the next phase of Nigeria’s refining transformation.

He called on stakeholders to move beyond speeches and communiqués and agree on practical solutions, measurable commitments and partnerships capable of accelerating capacity optimisation and export growth.

“History rarely rewards those who simply identify problems. It remembers those who solve them.

“Let every stakeholder leave this room 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,” he said.

He said the ultimate ambition should be to create a refining industry large and competitive enough to satisfy Nigeria’s requirements while establishing the country as a dependable supplier of petroleum products to other African economies.

“Every barrel refined in Nigeria means more jobs for our people, more opportunities for our businesses, more value retained in our economy and greater energy security for our future,” Oyarekhua added.
He further call on Nigeria to embrace a new era of domestic refining and export-led value creation,.

“Refine more. Import none. Create more value. Create more jobs. Build a stronger Nigeria.

“Together, let us transform Nigerian crude into Nigerian prosperity, and let future generations say that when the opportunity came to change our story, we all seized it,” he said.