CORAN Calls for End to Petrol Imports, Wants Nigeria to Become Africa’s Refining Hub

The Crude Oil Refinery-Owners Association of Nigeria, CORAN, has called on the Federal Government to phase out unnecessary petroleum-product imports and maximise Nigeria’s domestic refining capacity.

The association said the country should move beyond exporting crude oil and importing refined products by developing an export-oriented refining industry capable of supplying both the Nigerian market and other African countries.

CORAN Chairman Momoh Oyarekhua made the call on Monday while presenting the association’s 10-point agenda at the 3rd Nigeria Oil Refining Summit held at the Eko Hotel in Lagos.

Oyarekhua said petroleum-sector reforms should prioritise the optimisation of existing refineries, improved infrastructure and policies that would support the expansion of domestic refining.

“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,” he said.

He argued that domestic refineries must have reliable access to crude oil at commercially viable prices if they are to operate efficiently. He also called for increased investment in pipelines, storage terminals and other infrastructure needed to move crude and refined products.

“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,” Oyarekhua said.

According to him, expanding local refining would help retain foreign exchange within the country while creating jobs and supporting industries such as petrochemicals and manufacturing.

As part of its 10-point agenda, CORAN called for the full institutionalisation of the Naira-for-Crude initiative and the adoption of a domestic crude pricing template that takes into account crude quality, delivery locations and the cost of domestic evacuation.

The association also proposed long-term financing and refinancing options for refinery upgrades and expansion. It called for faster development of pipelines, storage terminals, depots, jetties and rail systems to strengthen the country’s petroleum distribution network.

CORAN further urged the government to eliminate petroleum-product imports once domestic refining capacity is sufficient to meet local demand and produce additional volumes for export.

The association said achieving that goal would require coordinated investment across the refining, crude supply, transportation and storage segments of the petroleum industry.