Nigeria’s ambition to achieve energy self-sufficiency through local refining is facing renewed uncertainty as the Crude Oil Refinery Owners Association of Nigeria (CORAN) blamed poor policy coordination, regulatory misunderstanding, and inconsistent crude-supply enforcement for crippling private refiners’ operations.

Speaking at the second Nigeria Refining Summit in Lagos on Monday, themed “Refining – Key to Energy Security in Africa,” CORAN President, Momoh Oyarekhua, said despite Nigeria’s vast crude resources, local refiners had been unable to operate optimally because policymakers “do not understand the sector” and continue to apply upstream logic to midstream realities.

He lamented that refiners have had limited engagement with government and regulators, describing the neglect of the midstream segment, the critical link between crude production and fuel supply as a key reason for the persistent weakness in Nigeria’s energy security.

Oyarekhua faulted the Petroleum Industry Act (PIA) for embedding contradictory provisions that make domestic crude supply optional rather than mandatory, saying the “willing buyer, willing seller” clause has undermined the intended benefits of the Domestic Crude Supply Obligation (DCSO).

According to him, inconsistent implementation of the DCSO has made it difficult for private refineries to access crude oil feedstock, leading to under-utilisation of refining assets and a reliance on imported products, contradicting the spirit of the PIA.

Oyarekhua cited the challenges facing Dangote Refinery as evidence of deep-rooted policy and structural failures across the midstream and downstream sectors.

He noted that private refiners, unlike state-run enterprises, operate on strict financial benchmarks and timelines dictated by financiers, which make disruptions in crude supply or product evacuation unsustainable.